Market fundamentals
National restocker steer prices increased in July, up by 0.7 per cent (pc) overall to 332c/kg lwt. At state level prices increased 5.1pc in Queensland and 3.8pc in South Australia. Nationally, prices have dropped 39.6pc below this time last year, which is consistent across states.
Rainfall across parts of Queensland offered some confidence in local markets as feedlots start to fill, with many anticipating a firming in cattle prices in the months ahead.
Export market volumes kicked again in June, with the latest statistics showing an increase of 20.1pc for the calendar year to date (30 June). The support has largely come from Indonesia up 75.5pc and the U.S up 62.4pc.
In other export news, Australia failed to wrap up negotiations for a free trade agreement with the European Union (EU) this week, however, both parties are optimistic a resolution could be achieved next month. The EU market presents a sizeable opportunity for Australian beef exports with a large consumer base willing to pay for quality beef.
From the field
Queensland
“Cattle numbers are starting to move in across the state with rain favourable rainfall in some areas, however other parts of the state remain dry".
“Selling season has been delayed by wet weather and there is currently a six-week waiting list to get into some processing plants.
“Prices appear to have bottomed, with demand from feedlots aiming to top up numbers in anticipation of prices firming over the coming months. Light cattle are extremely good buying at the moment for both females and steers.
“The Annual Alice Springs sale was postponed due to wet and cold weather with record rains in the southern part of NT and the Gulf of QLD.” - Peter Homann, Elders National Livestock Manager, Australia.
South Australia
“In cattle, we are seeing very limited numbers from the north at the moment".
“Numbers are being held due to good rain in pastoral country over recent weeks.” ” - Damien Webb, Elders Northern Livestock Manager, South Australia.
Tasmania
“June continued the previous trend of cattle prices, with downward pressure by both processors and restockers alike. There were plenty of livestock available in the marketplace.
“Season wise the state generally had a particularly good autumn, which enabled restockers to actively pursue numbers without too much buying pressure from mainland clients. This also kept our cattle rates generally above our mainland counterparts.”- Gavin Coombe, Elders Livestock Manager, Tasmania.
Market indicators
Note: States without sufficient data for the current month or without data for a specific stock category will not appear in the table.
Sources: Price data reproduced courtesy of Meat & Livestock Australia Limited.
The information contained in this article is given for the purpose of providing general information only, and while Elders has exercised reasonable care, skill and diligence in its preparation, many factors (including environmental and seasonal) can impact its accuracy and currency. Accordingly, the information should not be relied upon under any circumstances and Elders assumes no liability for any loss consequently suffered. If you would like to speak to someone for tailored advice relating to any of the matters referred to in this article, please contact Elders.