Female cattle move into record territory

Tighter supplies of female cattle have seen the domestic cow market move into unprecedented territory. Since the start of February, the National OTH Medium Cow Indicator has averaged 550¢/kg carcase weight (cwt), the highest on record.

OTH prices have moved from strength to strength since the start of the year, with processors sourcing supplies from a dwindling pool of available female cattle. The demand for manufacturing beef exports has also remained steady, putting additional upwards pressure on the cow market.

Saleyard indicators were not exempt from these trends, with the National Medium Cow Indicator lifting to 595.5¢/kg cwt for the week ending 26 February, 21¢/kg cwt shy of the record levels in November 2020. Increased restocker competition has continued to exacerbate the upwards movement of OTH prices as the national herd recovery gains momentum.

For the month of February, national OTH medium cow grids averaged 548.95¢/kg cwt, up 16% on the same month in 2020. Elevated grids in Queensland, which saw the monthly average reach 581¢/kg cwt, the highest on record, have buoyed the current prices. According to National Livestock Reporting Service data, female yardings in Queensland for the month of February were down 38% on year-ago levels, with the female portion of total slaughter accounting for just 34%. While Queensland missed the spring downpour that provided reprieve in NSW last year, conditions have since improved, resulting in renewed northern restocker confidence in the market and, subsequently, smaller offerings of productive breeding stock.

Looking ahead, processor grids will likely continue to respond to subdued female offerings. The turnaround in conditions has primed eastern states producers to rebuild and this will likely see heightened retention of productive stock through to the second half of the year.

© Meat & Livestock Australia Limited, 2021