THE cattle market continues to climb with Meat and Livestock Australia's key benchmark eastern young cattle indicator hitting 551.5c/kg dressed weight at the close of sales on Tuesday.
The seven-day rolling average was up 4.25c, setting another record in a market driven by a sliding Australian dollar, growing concerns over the availability of cattle and increasing confidence in both export beef and live cattle markets.
The indicator is up 21.25c on a month ago and a staggering 214c on the same time last year, reflecting the scramble between restockers, lotfeeders and meatworks to secure cattle supplies.
It means the indicator has continually been in record territory since mid-December, after being its stellar climb starting in mid-November after useful rain in the southern states.
Elders Queensland livestock manager Cameron Wilson the market was continuing improve in line with improved seasonal conditions in some areas.
"I think we are still to see the top of the market," Mr Wilson said.
"Even with the drought there is a lot of confidence in the market that hasn't been around for a lot of years."
He said the long and widespread drought across western Queensland was resulting in an influx of cattle onto the market. While steers had been making 350c/kg and heifers had been selling well, breeders were the category to watch.
"There is some potential catch-up with breeders, especially when we get a break in the western season," Mr Wilson said.
"Cows and calves have been making $1400 at Roma but in the south good quality Angus cows and calves have been hitting $1800 to $2000. When it does rain in the dry areas, numbers will slow and the market can be expected to become dearer."
Mr Wilson said that in addition to strong demand from feedlots most oat crops were in "fantastic" condition. The ongoing demand had again seen cattle prices return to where store cattle were dearer on a cents a kilogram basis than slaughter cattle.
"We went through a period where store cattle were cheaper than slaughter cattle on a cents a kilogram basis but the market has now caught up," he said.
The market went viral in mid-June, smashing through the 500c level, continuing its rapid rise to be up a further 20 percent on 551.5c this week.
