Weekly cattle and sheep market wrap

Cattle

Restocking sentiment in the south has softened as the herd rebuild reaches maturity. The Restocker Yearling Steer Indicator softened 11.78¢ week-on-week. Prices were softer in NSW and Victoria by 31¢ and 109¢ respectively.

Weight seemed to be driving the market in NSW and Victoria, with steers 330–400kg strengthening in price by 6¢ while prices for lighter cattle eased. The 200–280kg weight range was the most numerous but softened in price by 27¢/kg live weight (lwt).

In another indication that weight is driving buyer demand, the Heavy Steer indicator held firm this week. The 400–500kg cattle went for the highest prices and strengthened week-on-week by 21¢/kg lwt. These cattle are generally sought after by processors. Although the heaviest cattle at 500–600kg were the most numerous through the indicator, they require more labour resources to process.

The indicator now sits at 329.06¢/kg lwt. Leongatha, Naracoorte and Mount Gambier had the largest premiums on the national average.

This demonstrates that buyers at these southern saleyards are being more selective and are looking for weight and condition.

Other southern-state indicators, such as the Restocker Yearling Heifer, are trading at significant discounts to the north. The Western Young Cattle Indicator (WYCI) is trading at a premium to the Eastern Young Cattle Indicator (EYCI). The WYCI strengthened 34¢ week-on-week, with improvements in price at both western sales, Mount Barker and Muchea. The WYCI is now trading at 770.98¢/kg carcase weight (cwt), an 89¢ premium on the EYCI.

Sheep and lamb

The sheep and lamb market has seen some volatility this week with significant softening in prices.

Weekly yardings softened 19% across sheep and lambs. Sheep yardings eased nearly 40,000 head.

Mutton prices softened 48¢ week-on-week, with easing demand and varied quality in Ballarat, the largest contributor to the indicator. More consistent quality was seen at Hamilton, the second largest contributor, than in previous weeks, but less activity from buyers caused prices to soften 100¢ week-on-week.

The Restocker Lamb Indicator eased 50¢ week-on-week with a larger proportion of young lambs contributing the indicator. Young lamb throughput increased to 23% through the indicator. Although the largest contributors – Armidale and Ballarat – were trading above the national average, most smaller contributors were well below these prices. This places pressure on the indicator and causes prices to ease.

Yardings through the Merino Lamb Indicator have softened by 71% week-on-week with prices easing 157¢ to 468.03¢/kg cwt. No young lambs moved through this indicator this week. The largest contributor, Dubbo, had a 209¢ softening in Merino lamb prices. Not all the usual buyers were active at the saleyard and the limited supply of Merinos on offer did not attract much attention.

Slaughter

Over the past two weeks, national cattle slaughter has held firm and numbers remain well above 2022 levels. This time last year, there was widespread flooding in the east, limiting supply to processors. This week, cattle slaughter reached 112,574 head, 22% above 2022 numbers.

Lamb and sheep slaughter has dipped week-on-week but remains above numbers seen this time last year. Reduced business days with the Labour Day public holiday in SA caused a small dip in numbers but had no real impact in Victoria.

Goat slaughter eased 12%, or 18,708 head, week-on-week.

Markets update

Blackall and Charters Towers markets did not run this week due to widespread rain in supply areas and flooding conditions in central and northern Queensland. This has tightened supply in Queensland.

The Labour Day long weekend in Victoria and SA meant Pakenham, Mortlake and Bendigo did not run this week.