Australia-This weeks cattle trade.

Cattle market alert

1/04/2009

Young cattle encourage throughput

At the completion of Tuesday markets, national throughput at MLA’s NLRS reported saleyards increased a further 5% on the previous weeks large yarding. Whilst Queensland witnessed very little change in yardings, NSW throughput lifted 6%, coinciding with a 50% rise in South Australian yardings and a slight rise in Western Australia. As the season begins to dry off in the north of NSW, producers are opting to offload. The cooler conditions as winter approaches have also encouraged the seasonal influx of numbers onto market.

Predominantly young cattle have made up the largest percentage of markets, capturing the rise in numbers. Grown steer supplies have eased whilst cow numbers have remained good. Quality has remained mixed with secondary lines contributing to a larger proportion of the penning.

Direct to slaughter rates have eased across both NSW and Queensland. The rising A$ initiating weaker export demand and the influx in numbers direct to kill have all encouraged the cheaper trend. Despite this weaker market, feeders have remained firm to slightly dearer, capturing the majority of increased numbers. The dearer rates are evident in the south of the eastern states as suitable lines become harder to come by.

Prices ease

Prices for young cattle have predominantly eased throughout the week. The rising numbers coinciding with reduced processor activity has encouraged the weaker trend. As the season begins to dry of in NSW and Queensland and dry conditions prevail in Victoria and SA, restocker activity has eased contributing to the cheaper rates. Prices for grown cattle have also eased whilst rates for cows have remained relatively firm as secondary cattle remain the flavour of the month.

At the conclusion of Tuesday markets the Eastern Young Cattle Indicator (EYCI) lost 8.25¢ on the previous week to settle at 313.25¢/kg cwt. The trade steer indicator dropped 5¢ – to 171¢ whilst feeder steers slipped 1¢ – to 168¢/kg. The Japan ox indicator, lost 4¢ – to 161¢ and US cow finished 1¢ cheaper at 124¢/kg.