Australia-The meat and Livestock Trade this week -full report.

General livestock wrap-up

6/03/2009

State of the state – south western Victoria

The western district of Victoria didn’t record any rainfall during the extremely hot months of January and February. However, this week saw a few welcome millimetres fall. The countryside is tinder dry and several grassfires have occurred, with one in particular, fanned by strong winds on 7 February, destroying the farmland of several dairy producers.

The dry conditions and bare pastures in the district have led producers to offload more stock in an effort to ration feed reserves. This culling comes off an already small base, as heavy culling has been constant over the last six to seven years due to consecutive abnormally dry seasons. Compared to other areas of the state, the western district has better stock water on hand; however, even this is running low for some producers.

Fortunately, prices for cattle, sheep and lambs have not fallen as is normally the case when forced culling occurs, with processors able to adequately handle the supply. Local saleyard rates for lambs are currently around 400¢ to 420¢/kg cwt, with many buyers anticipating further rises over coming weeks. Sheep are selling quite well with most making from 160¢ to 230¢/kg cwt. Over-the-hook sheep rates are currently a fair way behind saleyard values, but lambs are similar. Most lambs are showing dryness despite a very large percentage being shorn. There is a noticeable wide range in quality among lambs and also a big range in weights. There is a wider range in sheep quality at the moment with extra heavyweight sheep coming into the Hamilton saleyards over recent weeks.

Cattle rates are also good at present, considering the conditions, although no records are being broken. Cows are currently in the 240¢ to 260¢/kg cwt range while most bulls are fetching from 125¢ to 160¢/kg lwt. Grown steers in the western district are selling from 140¢ to 160¢ for the C3 and C4 grades while the D2 manufacturing steers are making between 130¢ and 150¢/kg lwt. Milk vealers and yearlings are in average to good condition with low numbers of top quality grades supplied. Milk vealers are hard pressed to get near the 200¢ mark with most C3’s from 140¢ to 180¢/kg lwt.

Hide supply outpaces demand

Hide supplies continued to outpace demand this week, with prices lower across the majority of categories compared to last week. Green hide prices are expected to remain weak over the short term due to soft demand.

Green hide prices are currently 74% to 85% below last year across all states while processed hides range between 34% and 84% lower, with lower grade brine cured hides most affected.

Variable lambskins hold rates firm

Skin rates have once again remained unchanged as there is still limited interest. There has been some enquiry for lambskins from China; however, at a lower price level and for longer wool length skins. Contributors report that there is virtually no product moving to Russia.

Quality has been very mixed with occurrences of frizzy wool, dust, seed and burr infestation. There has also been a mix of weights offered.

Goats ride a cheaper trend

Goat rates were slightly cheaper this week as trade was quiet. The variable A$ along with a plentiful supply of goats is aiding this trend. A number of contributors have enough stock on hand and have reduced rates to limit stock.

Quality has generally been good with the better quality goats coming out of northern NSW and regions that have experienced rains recently. Most are of good weights; however, some from southern regions have been showing signs of the recent hot dry conditions.