RAIN and the promise of more across a broad swathe of Queensland and NSW has helped lift cattle prices throughout eastern Australia.
The 5-10c/kg liveweight lift in the store market couldn’t have come at a better time with tens of thousands of weaner cattle about to hit the market.
Ray White Livestock coordinator Bruce Birch said it was the first time in more than 12 months that store prices more accurately reflected meatworks quotes.
“For the past 12 months or more there has been plenty of concern about how much producers have been paying for stores compared to what was being offered by both feedlots and meatworks,” Mr Birch said.
“The key to the market is follow up rain and that may deliver another 5-10c gain. But I don’t think we’re going to see anything like a 50c jump because too many people made a losses on last year’s market when they on-sold those cattle.
“Buyers seem much more likely to bid to a more stricter limit after last year’s experiences. The reality is paying 400c for a 300kg weaner is the same amount of money as 300c for a 400kg steer. Everyone needs to make a profit eventually.”
At Tuesday’s Roma sale 220-280kg weaner steers averaged 325c, 280-350kg steers averaged 306c, and 350-400kg steers and averaged 288c while 400-550kg feeder steers averaged 279c.
While plenty of weaners are already starting to hit the market on the back of a tough January, the weaner sales unofficially kick off with the Tenterfield feature Angus sale on March 8. Some 4000 head are booked.
Commbank economist Tobin Gorey said export beef prices were being supported by small gains in US finished cattle futures prices and an Australian dollar below US78c.
“The gains, amplified by a stronger greenback, will help competitiveness,” Mr Gorey said.
Meanwhile, the past week’s rain and bureau predictions of 100mm in northern areas cause significant disruption in the processing sector. Meatworks added up to 10c to grid prices early in the week in attempt to attract supply, even though a number of plants were unable to kill.
