Southern OTH cow indicators soar in last week of June

Over-the-hook (OTH) cattle indicators across the southeast states maintained an upward trajectory during June, and the final week of the month was no exception with the heavy cow categories in particular lifting as much as 20¢/kg cwt from the previous week. 

Driven by tighter supplies, widespread rainfall and strong demand from processors, cow categories across NSW and Victoria increased considerably in the last week of June, while Queensland cow indicators were unchanged from week-ago levels.

The NSW heavy cow indicator (300-400kg, A-D muscle) averaged 512¢ this week, up 17¢ on last week’s levels and 95¢/kg cwt above where it was the same time last year. In Victoria, the heavy cow indicator gained 5¢ from last week, at 476¢ – up 68¢/kg cwt year-on-year. Despite holding firm this week, at 509¢, the Queensland OTH heavy cow indicator is up almost 100¢/kg cwt from the year prior.

Adult cattle slaughter in Queensland totalled just over 65,800 head last week – down 9% from the week before. In NSW and Victoria, however, cattle slaughter lifted 12% and 15% on the week prior, to just over 28,500 head and 23,100 head, respectively. An increase in processor activity in the physical markets recently has seen bidding competition intensify, with buyers looking to secure heavier categories, resulting in a dearer trend for cow and grown cattle.