Cattle Prices Experience Significant Decline as Saleyard Numbers Surge

This week, cattle prices have taken another hit, with record-breaking numbers pouring into saleyards across Northern New South Wales. Dubbo saleyards hosted an astounding 11,500 head, causing agents to work late into the night to auction off the cattle. Tamworth and Gunnedah also reported impressively high numbers.

As yarding numbers increase, cattle prices have unfortunately taken a downturn. According to Meat & Livestock Australia, the processor cow indicator has decreased by 25c this week to 290c/kg. This marks the first time the indicator has fallen below 300c since July of the previous year, representing a 50c drop over the past month.

March witnessed a peak in cow yarding, with a record total of 84,069 head across the nation, as noted by MLA analyst Alex Fry. The Dubbo and Inverell saleyards were significant contributors to this week’s processor cow indicator, mirroring trends observed in March. Discussions at the recent WagyuEdge conference highlighted concerns about a potential future shortage of high-quality Angus and Wagyu cattle due to current sell-offs in Northern NSW.

In Southern Queensland, direct consignment grids for cows remain strong, with prices around 680c/kg carcass weight. Southern processors are now active in both direct consignment markets and saleyards in the region.

Despite the downturn, the market for cows remains historically robust, with good heavy cows commanding prices around $2200. Additionally, the price of 90CL trimmings, a key driver in cow pricing over the last six months, remains strong. Recently, it peaked at 1199c and is currently quoted at 1150c on Beef Central.

The strength of the 90CL trimmings market is attributed to various international dynamics, including a record-low herd in America and increased demand from markets in Europe seeking Australian trimmings.

Young Cattle Prices Also Decline

The Eastern Young Cattle Indicator has also experienced a drop, dipping below 800c/kg carcass weight for the first time since July of the previous year, opening today at 782c. In the last month, the indicator has dropped by 71c.

Different factors are contributing to the EYCI drop compared to the cow market, with the Roma and Dalby saleyards showing the largest numbers. Reports indicate that cattle have been drawn from as far away as Western Queensland and the Northern Territory.