Weekly cattle and sheep market wrap
26 May 2023
Key points:
- Continued elevated slaughter across sheep, lambs and cattle have led to the highest eastern states total slaughter numbers since 2002.
- High supply of stock, filled contracts and easing demand are all contributing to softening prices.
- Quality is still dictating the market, as buyers aren’t having to compete as much for stock.
Slaughter
Slaughter levels remain elevated across lambs, sheep and cattle, leading to the highest combined eastern states slaughter since 2002 at 642,500 head.
Cattle slaughter remained firm while lamb and sheep slaughter increased to 434,461 and 180,507 head respectively. Some processors are reportedly booked out for some months, which is having some impact on demand at the saleyard.
With elevated sheep and lamb slaughter, goat numbers have come back slightly as some processors prioritise other smallstock.
Saleyard demand
Elevated slaughter and filled contracts at the processors are reducing the need to supplement numbers at the saleyards. This is being reflected at large sales such as Wagga Wagga sheep and Roma cattle. Good quality stock are still fetching a premium price on plainer types.
The easing demand is a result of the numbers at saleyards reducing the need for buyers to compete. Restocker demand has also eased with good numbers on-farm after the extensive herd and flock rebuilds. Stock moving directly from the paddock to feedlots and processors is further reducing the need for numbers to be supplemented.
This was reflected in an easing of the Feeder Steer indicator, reaching 319.18¢/kg liveweight (lwt) with throughput increasing 40% week-on-week. Mount Barker traded at the highest premium on the national average, at 381.24¢/kg lwt. Blackall, which contributed 12% of throughput in the indicator, traded 12¢ below the national average.
Processor cow prices have been able to hold firm with similar throughput. The number of extra heavy cattle (500kg+) contributing to the indicator increased this week, with the greatest contribution coming from Roma at 13%. Declining pasture quality in the region and some offloading of preg-tested empty cattle have both affected the quality of cattle being presented, as well as the demand from buyers.
The Dalby cattle sale had a good showing of export buyers, with numbers increasing by nearly 2,000 head. A lift in quality for some lines saw a strengthening in price for these good quality cattle.
Trade lamb prices have eased 6¢ week-on-week, further demonstrating the easing demand from booked-out processors. This indicator reached 634.35¢/kg carcase weight (cwt). Prices at Ballarat eased but remain at a premium on the national average at 676.86¢/kg cwt. Numbers through the indicator raised nearly 12,000 head as supply continues to hit the market.
Wagga Wagga saw a lift in sheep numbers by 5,000 head, while lamb numbers held firm. Buyers were selective with trade and heavy lambs, with mixed quality of stock leading to softer prices overall.
Numbers at Forbes lifted significantly with 28,600 head moving through the saleyard. This was an increase of over 4,000 sheep and 6,000 lambs. Here, quality dictated the demand.
