Market Update: Challenges and Opportunities in Cattle Sales
Steer highlights included two lines totaling 150 Angus steers aged 17-19 months, averaging 480kg from Walcha, NSW, which returned 459c/kg or $2203/head, traveling to a buyer near Anakie, VIC. A further 375 steer brothers, slightly lighter at 474kg, made 457c/kg.
The Australian cattle market is currently under significant pressure, as heavy supply has led to substantial reductions in sale turnover. Last week, only 41% of the 26,884 head offered on AuctionsPlus were sold, marking a 32% decrease from the previous week.
Record Listings Amid Drought Conditions
This offering was the fourth largest weekly listing on record, following an even higher volume the week before. Drought-affected areas, particularly the NSW Riverina, heavily influenced this influx.
State Contributions and Purchasing Trends
New South Wales dominated the listings with 15,860 head (down 2418 or 13% from the previous week). Queensland saw a 30% increase with 5147 head, and Victoria also rose by 15% to 4004 head. However, purchasing slowed on a state level, with NSW buyers down 66% to 4256 head and Queensland buyers dropping 3.5% to 4640 head. Notably, interstate purchasing comprised 32% of the total volume sold.
The only previous weeks with larger offerings were the first two weeks of March 2020, coinciding with the onset of the COVID-19 pandemic. Ongoing dry conditions in southern regions continue to drive this high volume onto the platform.
Price Movements and Highlights
All five heifer categories and the two primary steer categories experienced notable declines in prices. Heifer prices dropped between 18c/kg and 98c/kg week-on-week. A few exceptions existed among smaller steer categories: some steers under 200kg gained 18c to average 455c, while feeder steers over 900kg rose by 11c to average 440c/kg, achieving a clearance rate of 86%.
Notable Steer Sales
A standout sale featured 150 Angus steers aged 17-19 months from Walcha, NSW, returning 459c/kg or $2203/head. Additionally, 375 slightly lighter steer brothers at 474kg fetched 457c/kg. Other key sales included 60 Angus steers aged 8-10 months averaging 328kg from Goondiwindi, QLD, which returned 448c/kg or $1470.
Heifer Sales and Regional Impact
Week-on-week losses among heifer ranks were substantial, particularly for heavy heifers over 400kg, which fell 69c/kg to an average of 297c. Notably, light heifers under 200kg dropped 98c/kg to an average of 284c, with a clearance of only 32%.
Among the notable heifer sales, 75 Wagyu x Angus heifers aged 14-18 months from Wandoan, QLD, averaged 394kg and returned $1780 or 452c/kg for a buyer in Gunnedah, NSW.
Breeding Female Categories
In the breeding female categories, trends were mostly down, with a significant offering of 2374 PTIC heifers increasing by 14c/kg or $44/head, averaging $1731, yet clearing only 26% of the offering. PTIC cows faced a more significant setback, clearing just 23% with an average of $1681, down $165 from last week.
Conclusion
As the market navigates through these challenging conditions, it is crucial for stakeholders to stay informed and adjust strategies accordingly. The fluctuating cattle prices and high supply levels reflect the ongoing impacts of drought and market dynamics.
Source: AuctionsPlus
