This week’s market:  

Numbers bounce back. Prices more variable. Export lines tend firm

Numbers bounced back following last week’s rain reduced supply with yardings nearly doubling and sometimes more at several centres. Young cattle quality became more variable with a greater mix of light unfinished cattle and better crop finished lines and this was reflected a wider price variation this week. Nevertheless, good numbers of yearling steers improved a few cents but yearling heifers tended cheaper by around -5c. Although restockers still showed keen interest in the calves and weaners these averages often came back around –(10-15c) on last week’s best rates. Export steers were able to maintain last week’s better averages, despite variations of +/- 3c. Similarly, cows overall remained firm despite variations of +/- 6c and occasionally more. A few OTH quotes moved up +5c in Queensland but there was no major upward trend although that pressure could be mounting.

Prime cattle trend:

Heavy export steers remained firm this week despite variations of +/- 3c and southern steers averaged between last week’s 184-187c to a top 194c. Prices for trade/feeder steers 400-500kg varied 3-6c around firm while a few improved up to +12c and the 200 head at Gunnedah led the market to a top 206c ave 185c (-3c) and ave 191c (+2c) while 400 head at Dubbo averaged 180c (+/- 3c) top 192c. Grown heifers improved +(3-5c) when not firm and occasionally more as a few at Wodonga led the market ave 180c (+14c) top 186c while the best at other NSW centres averaged 175-178c top 200c. Cows overall remained firm despite variations of +/- 6c and occasionally more. A fair number of medium types at Dubbo led the market ave 154c (+5c) top 160c while averages of 147-149c top 158c were common for fair numbers at Dalby (-6c) and Roma (-4c).

Store cattle trend:

Yearling steer prices varied +/- 5c either side of firm but good numbers gained +(6-10c) for an overall improving trend. Market leaders in the south averaged 203-207c top 219c but averages of 195-197c top 216c were more common, including at Dalby (+11c). Yearling heifers trended easier by -5c although some improved as much or a little more occasionally. Heavies at Dubbo led the market to average a firm 192c top 208c but Dalby was among those with the more common average 184-188c top 210c. Prices for calves & weaners under 220kg tended easier than last with steers easing around -15c at several centres. At Gunnedah, around 100 weaner steers led the market to average a solid 234c top 258c while young steers and calves averaged 202-206c top 218c at Dalby (-14c). Heifer calves at Gunnedah led the market ave 208c top 219c. Weaners 220-280kg were cheaper by –(4-15c) and small numbers of the best steers averaged 210-220c top 234c at Dalby (-4c) and further south, while steer weaners at Longreach averaged 204c (+4c) top 215c. The best heifer weaners from Dalby south averaged 202-207c top 215c.

OTH Rates:

Some quotes at some works moved up +5c this week but generally grassfed rates in the south stubbornly refuse to improve despite buyers continuing to pay premiums for liveweight bullocks as opposed to OTH rates. One southern buyer lifted his Grainfed rates +5c across the board but by +13c at the top weight. And the same buyer lifted grassfed rates in central Queensland by +5c (for the second week) but cows by +7c. The best liveweight bullock rates in the south this week remained in the vicinity of 185c average, which still represents a +(5-10c) premium over equivalent OTH quotes, and more at dearer prices. (Current OTH price details below).

OS News:

The US imported beef market is basically taking a pause as they wait to assess the demand figures after their up-coming Labour Day long weekend. However the forward bullish sentiments about this market that we mentioned three weeks ago continue to surface in US industry comments. A recent CME newsletter points to “strong US exports to Japan, Korea and Mexico, low domestic cattle numbers and a reducing herd plus low exports from Australia” indicating that “US beef supply may be even tighter than the latest (USDA) forecasts suggest”. Which of course, should support a strong market during the rest of the year.

Another US commentator laments the continuing shortage of Australian product making it to the US market and says “Australian exporters attending their annual convention this week at the Queensland gold coast say other world beef markets (including Russia, Asia and Middle East) are currently paying their high asking prices - so only 25% or so of Australia's total beef exports is now going to US (it used to be 60+ percent some decades ago).” Which tends to confirm that the US market is the benchmark against which other markets must compete if they want the product. And hence if any of our export markets are crying ‘tight supply’ you can bet that it is.

US Market Reform: The USDA’s proposal to introduce new market rules to make cattle trading fairer and more transparent has got the industry fighting amongst itself about whether the changes are necessary. But reforming the US cattle market was always going to be a bloody affair (as it would be in the Australian cattle market) as the USDA proposal is proving.

Its current round of industry ‘talks’  is highlighting the passion, the polarisation and indeed the vested interest that potential change uncovers. There’s the ‘It ain’t broke so don’t try to fix it; we’ll all be ruined if you do’ point of view – from the processing sector and their advocates. Then there’s the view of the USDA and some producer interest groups, broadly - ‘Buyer concentration in the US has become an impediment to fair markets and it needs to be controlled to ensure the financial survival of cattle producers’. Any proposals for long-overdue cattle market reform in Australia are bound to encounter similar problems, so see what you think! You’ll find three articles on the topic in this week’s news roundup and there are bound to be more as the December deadline for discussion approaches.

Typical PRIME & STORE Benchmark Prices

Steers over 500kg: Numbers improved this week and despite variations of +/- 3c prices generally remained firm with southern averages between last week’s 184-187c tops 194c while a few at Toowoomba made 190c. Heavies at Roma averaged a firm 177c top 180c while heavies at Emerald averaged 169c (+4c) top 175c. Longreach averaged 163c (-2c) top 169c and heavies at Charters towers averaged 160c (+2c) top 166c.

Steers 400-500kg  Prices varied (3-6c) around firm and a few improved up to +12c. More than 200 head at Gunnedah led the market to a top 206c ave 185c (-3c) and ave 191c (+2c) while 400 head at Dubbo averaged 180c (+/- 3c) top 192c. Heavies at Longreach averaged 161c (-5c) top 172c while a few averaged 168-170c top 184c at each of Emerald (-6c) and Gracemere (+12c). A few medium types at Roma averaged 164c top 168c.

Heifers over 440kg: Grown heifers were up +(3-5c) when not firm and occasionally up to +14c dearer. A few at Wodonga led the market ave 180c (+14c) top 186c while centres with ave 175-178c top 200c were at Dubbo (+3c), Gunnedah, and a few at Wodonga. Elsewhere, averages of 166-168c top 175c were at Dubbo (+7c), for a few at Roma (+1c) and a few at Dalby –(2-8c). Nearly 200 head of light heifers at Longreach averaged 151c (+12c) top 165c.

Cows over 500kg: Despite variations of +/- 6c around firm and occasionally more cow prices on average remained firm. A fair number of medium types at Dubbo led the market ave 154c (+5c) top 160c while a handful at Toowoomba made 158c and a handful at Dubbo made 169c. Averages of 147-149c top 158c were common for fair numbers at Dalby (-6c), Roma (-4c) and for a few at Gunnedah. Plainer and western types averaged 138-142 top 157c at Dalby, Emerald (+12c) and Gunnedah (-7c). The 200 head at Blackall averaged 133c top 140c. Medium cows generally averaged 135-145c and along with light cows tended to improve most.

Yearling steers 300-400kg: Prices varied +/- 5c either side of firm but good numbers gained +(6-10c) for an overall improving trend. Market leaders averaged 203-207c top 219c at Dubbo (+2c), Gunnedah (-2c) and for a handful at Wodonga. Elsewhere, in the south an average 195-197c top 216c was made at Dalby (+11c), Gunnedah (+10c) and Toowoomba while heavies at Roma averaged 191c (+6c) and a good number of medium types there averaged 183c (-5c) top 212c. In the north, steers averaged 170-178c at Longreach and 165c top 187c at Blackall and Gracemere (-3c).

Yearling heifers 350-450kg: By the numbers, heifers suffered a -5c easier trend although some improved as much or a little more occasionally. Heavies at Dubbo led the market to average a firm 192c top 208c and a handful at Wodonga averaged 211c. But a more common average was 184-188c top 210c at Dalby, Gunnedah (+2c to -5c) and Wodonga (+1c). Heavies averaged 180c top 201c at Dalby (-6c) and Gunnedah (+5c). In the west, Roma averaged 168c (-4c) top 210c while in the north Gracemere and Emerald averaged 152c (-4c) top 176c and Blackall averaged 146c (-19c) top 159c.

Calves & Weaners under 220kg: Prices tended easier than last week’s enthusiastic run with steers easing around -15c at several centres. However at Gunnedah, around 100 weaner steers led the market to average a solid 234c top 258c while young steers and calves averaged 202-206c top 218c at Dalby (-14c) and Longreach. Toowoomba calves averaged 200c (-2c) top 213c while steers at Blackall averaged 195c (-15c) top 216c. Gracemere steers averaged 181c (-13c) top 230c. Heifers: Gunnedah heifers led the market ave 208c top 219c while a few at Longreach sold between 184-187c and a few at Blackall averaged 179c (-2c) top 190c. Gracemere heifers averaged 174c (-10c) top 195c.

Weaners 220-280kg: Weaners were cheaper than last week’s high rates by –(4-15c) and relatively small numbers of the best averaged 210-220c top 234c at Dalby (-4c), Dubbo (+14c) and Gunnedah (-3c). Longreach steers averaged 204c (+4c) top 215c while a few at Toowoomba averaged 207c. At Blackall, 200 steers averaged 199c (-15c) top 219c while at Gracemere, more than 500 steers averaged 186c (-4c) top 214c. Heifers: Small numbers of heifers averaged 202-207c top 215c at Toowoomba, Wodonga, and Dalby (-3c) while a reasonable number averaged 202c at Gunnedah. A few heifers at Longreach averaged 175-187c (+20c) top 188c while Blackall heifers averaged 169c (-7c) top 190c and nearly 600 heifers at Gracemere averaged 164c (-15c) top 193c.

PRIME & STORE SUMMARIES:

QCMI (-6.1): This week 184.1 – Last week 190.2

TOOWOOMBA: (30/8/10) Similar numbers to last week and another small yarding of 580 head (+70 hd) and prices were generally firm to improved and by +(6-12c) for yearlings. Prime export steers over 500kg and over 600kg averaged 186-190c top 194c and a handful of heavy cows over 520kg averaged 152c (+10c) top 158c. Heavy bulls over 600kg averaged 147c top 156c.

Heavy yearling steers went to slaughter and feed as those over 400kg averaged 189c (+11c) top 191c while Y/steers 330-400kg averaged 195c and those under 330kg averaged 204c (+12c) top 216c. Medium restocker and feeder steers under 330kg averaged 209c (+7c) top 219c. Yearling heifers under 330kg in medium and heavy condition went to slaughter and feed ave 188c (f to +6c) top 195c.

Medium calves to restock and slaughter averaged 200c (+2c) top 213c while medium vealer steers 200-280kg averaged 209c top 215c to restock. Vealer heifers 200-280kg in medium and heavy condition sold between 202-206c to slaughter.

ROMA (Store): (31/8/10) Numbers rebounded to 4900 head (+2860 hd) with a large percentage of young cattle under 330kg plus a good number of heavy yearling steers. Feeder and restocker competition kept those prices mostly firm to +11c dearer for the young heifers. Mid-weight feeders and restockers varied +/- 6c around firm. Cows to slaughter and restock were firm for the medium types but -7c cheaper for the light cows.

Medium grown steers 400-500kg to slaughter sold for 164c while a few lighter types made 158c. Cows 400-520kg went to slaughter and restock as those in medium condition averaged a firm 139c top 164c and light cows averaged 128c (-7c) top 137c. bulls under 450kg topped at 180c ave 168c (+32c). Cows and calves sold to $950 and averaged $810/unit.

The large number of heavy yearling steers over 400kg sold three ways to average a firm 181c top 195c while heavy restockers 330-400kg gained +6c ave 191c top 215c. Medium feeders and restockers 330-400kg averaged 183c (-5c) top 212c. The 1000 steers under 330kg in heavy and medium condition returned to paddock for a firm average 207-214c top 230c.

Heavy yearling heifers under 400kg averaged 168c (-4c) top 188c selling three ways while medium types under 330kg gained +11c, topped at 208c and averaged 203c to slaughter and ave 192c to restock.

EMERALD (Prime): (31/8/10) Similar numbers to last sale at 600 head with cows nearly half the yarding. Improved quality saw prices lift +4c for steers and heifers and up to +12c for cows. Steers over 550kg averaged 169c (+4c) top 175c while heifers over 400kg gained +3c ave 144c top 159c and heifers 330-400kg averaged 151c top 157c. Cows gained +12c as those over 520kg averaged 141c top 147c and cows 400-520kg averaged 130c top 143c. Bulls over 600kg averaged 131c +16c top 147c.

DALBY: (1/9/10) Numbers bounced back after last week’s rain affected sale to 3740 head (+2250 hd) including a large number of yearlings under 330kg and feeders and restockers accounted for the majority of young cattle sales. Calves lost -14c but yearlings tended dearer and by +(6-18c) at times. Export steers were firm to -4c easier and cows lost –(3-6c).

Prime steers over 500kg and over 600kg averaged 186c (f to -4c) top 193c while a few grainfeds reached 199c. Heavy cows averaged 144-149c (-6c) top 156c while medium cows 400-500kg averaged 133c (-3c) top 139c and a few light types averaged 125c top 130c. Prime grown heifers sold between 166-168c –(2-8c). Heavy bulls over 600kg averaged 146c top 155c.

Heavy yearling steers over 330kg and over 400kg averaged 186c (f to -4c) top 200c selling three ways while medium feeders 330-400kg gained +11c ave 196c top 208c. More than 400 medium Y/steers under 330kg gained +18c ave 212c top 241c to paddock and feed while more than 600 similar yearling heifers sold three ways to average a firm 189c top 204c and light young heifers averaged 168c top 187c. Heavy yearling heifers over 330kg topped at 197c as those to 400kg averaged 179c (-6c) to feed and those over 400kg averaged 185c (+6c) to slaughter.

Medium calves to restock and slaughter averaged 202c (-17c) top 218c while medium vealer steers 200-280kg returned to paddock ave 220c (-4c) top 230c and similar V/heifers went to slaughter ave 203c (-3c) top 209c.

LONGREACH: (1/9/10) Numbers reduced substantially to 2920 head (-1300 hd) and included a large percentage of grown steers and cows. Cows recovered +2c, grown heifers gained +12c and grown steers eased –(2-5c) when not firm. Yearling prices generally improved +(3-12c) and a few vealer heifers were +(12-18c) dearer.

The few prime steers over 400kg and over 500kg made 177c while the majority were over 500kg and heavy types that averaged 163-167c (f to -2c) top 170c. A good number of heavy steers between 400-500kg averaged 161c (-5c) top 172c and heavy steers under 400kg averaged 160c (-3c) top 169c.

The few heavy cows over 400kg averaged a firm 141c top 144c while the majority over 400kg were medium types that averaged 125c (+2c) top 139c and medium cows under 400kg averaged 118c (+2c) top 132c. The good numbers of grown heifers in light condition gained +12c ave 151c top 165c. Medium bulls over 600kg averaged 141c (+17c top 148c).

Heavy yearling steers reached 189c as those under 330kg averaged 187c (+3c) and those 330-400kg averaged 178c (-3c).Medium yearling steers under 400kg averaged 167-170c +(3-12c) top 174c while light steers averaged 147-153c  top 156c. A handful of heavy yearling heifers sold for 174c +(6-10c) while medium types under 400kg averaged 158c +(5-7c) top 168c and poor quality heifers averaged 140c top 145c.

Heavy vealer steers under 280kg averaged 205c (+4c) top 216c while poorer quality averaged 147-153c top 157c. Heavy vealer heifers under 280kg sold for 187c (+18c) while medium types averaged 175-184c (+22c) top 185c.

CHARTERS TOWERS: (1/9/10) Numbers nearly doubled to 2140 head (+940 hd) with 700 steers and 300 cows dominating the prime section. Prime cattle prices remained firm to +2c dearer while store cattle were –(8-14c) cheaper. Steers over 500kg averaged 160c (+2c) top 166c while the majority of steers were under 500kg and averaged 147c (-2c) top 161c. Cows remained firm as those over 400kg averaged 122c top 135c and cows under 400kg averaged 107c top 127c. Heifers under 440kg gained +3c ave 121c top 132c. Bulls over 450kg averaged a firm 123c top 133c. STORES: Store steers over 200kg and over 330kg averaged 140-147c –(3-14c) top 161c while weaner steers averaged 157c top 168c. A good number of store heifers under 200kg averaged 136c (+2c) top 164c while heifers 200-280kg averaged 122c (-8c) top 136c.

ROMA (Prime): (2/9/10) A few less than last week at 1880 head (-230 hd) but meatworks kept most steer prices close to firm. However heifers and cows eased around -5c. Prime steers over 500kg and over 600kg averaged 176c (+1 to -2c) top 180c while a few medium and heavy types averaged 162-165c top 169c. Heavy cows over 400kg and over 520kg averaged 145-147c (-4c) top 155 while medium cows 400-520kg averaged 133c (-3c) top 145c. A good number of heavy bulls over 600kg averaged 145c (-11c) top 160c.

Prime yearling steers over 400kg averaged a firm 177c top 183c while similar yearling heifers averaged 164c (-5c) top 169c. Prime grown heifers topped at 169c as those under 540kg averaged 161c (-3c) while heifers over 540kg averaged a firm 168c.

BLACKALL: (2/9/10) Numbers tumbled to 1860 head (-4340 hd) following last week large special store sale and young cattle prices tumbled with them dropping between –(6-19c). Apart from young cattle, cows comprised more than a third of this week’s yarding.

Steers between 350-500kg averaged 167c -(6-14c) top 184c while the 400 steers under 350kg averaged 195-199c (f to -15c) top 219c. Heifers 350-450kg dropped -19c ave 146c top 159c while heifers 280-350kg eased -8c ave 163c top 187c. Heifers under 280kg topped at 190c as those to 220kg averaged 179c (+2c) and heifers 220-280kg averaged 169c (-7c).

From the good supply of cows, those over 500kg averaged 133c top 140c while cows 400-500kg averaged 123c top 135c and cows 300-400kg averaged 108c top 126c. A good supply of bulls over 600kg reached 150c ave 128c while bulls 450-600kg averaged 132c top 138c.

GRACEMERE: (3/9/10) Numbers nearly doubled to 2430 head (+1050 hd) after last week’s rain reduced yarding with the majority young cattle under 400kg plus a reasonable number of cows. Cows remained firm to +9c dearer for the heavies while young cattle mostly lost between –(4-15c) with young heifers hardest hit.

Steers between 300-500kg averaged 165-170c (-3c to +12c) top 187c while the 700 steers under 300kg averaged 181-186c –(4-13c) top 230c. Heifers 300-400kg eased -4c ave 152c top 176c while the 800 heifers under 300kg topped at 195c as those to 200kg averaged 174c (-10c) and heifers 200-300kg averaged 164c (-15c).

Heavy cows over 450kg regained +9c ave 136c top 156c while cows 400-450kg averaged a firm 125c top 132c and cows 320-400kg averaged 121c top 130c. Cows and calves reached $890 to average $760 per unit. Manufacturing steers over 540kg averaged 168c top 171c. Bulls over 600kg averaged 124c (-7c) top 133c.

WODONGA: (31/8/10) Similar numbers to last week at 1300 head (+100 hd) included a good percentage of heavy export steer that gained +2c. Yearling steers gained up to +5c while Y/heifers eased -3c when not firm. Vealer steers lost –(7-10c) but vealer heifers hovered around firm.

Prime and heavy export steers over 500kg averaged 184c (+2c) top 194c while a few bullocks gained +6c and the few trade weights gained +9c ave 180c top 183c. Prime grown heifers topped at 186c and averaged 180c (+14c) for those over 540kg and ave 177c (+1c) for those under 540kg.

A few prime yearling steers under 330kg made to 217c to slaughter while heavy slaughter types over 400kg averaged a firm 195c top 210c and a good number of heavy feeders over 330kg and over 400kg averaged 192c (+3c) top 196c. Yearling heifers mostly went to slaughter as heavies over 400kg averaged 178c (-3c) top 202c while medium types 330-400kg averaged a firm 186c top 213c. Light heifers over 400kg made 165c.

Vealers all went to slaughter. Prime vealer steers under 330kg averaged 209c –(7-10c) top 224c while a few heavies over 330kg averaged 196c top 205c. Prime vealer heifers under 30kg averaged 207c top 218c.

GUNNEDAH: (31/8/10) Numbers bounced back to normal after last week’s rain affected sale with 2910 head yarded (+2160 hd). Young steer prices ranged around firm to +10c dearer while heavy feeders were +/-3c around firm and the few export weight steers were around firm to -5c easier. Heifers were mostly firm to +5c dearer but heifers between 300-350kg dropped -5c. Slaughter cows lost –(3-7c).

Steers over 500kg topped at 192c as the handful over 600kg averaged 187c while those 500-550kg averaged a firm 180c and steers 450-500kg averaged 185c (-3c) top 196c. Steers 350-400kg gained +10c ave 197c top 216c while steers 300-350kg averaged 203c (-2c) top 219c. Steers between 250-300kg averaged 212c (+13c) top 222c while weaner steers under 200kg averaged 234c top 258c.

Heifers between 400-500kg averaged 178-180c (+5c) top 201c while heifers between 250-400kg averaged 184-188c (f to -5c) top 209c. Young heifers under 250kg reached 219c ave 202-208c.

Cows over 550kg averaged 148c top 158c while cows 500-550kg lost -7c ave 142c top 157c and cows 450-500kg averaged 134c top 155c. A few restocker cows 400-450kg averaged 129c (+3c) top 142c. Bulls over 600kg gained +8c ave 154c top 167c.

DUBBO: (2/9/10) Numbers doubled to 4350 head (+2200 hd) to include few vealers but a good spread of numbers throughout other categories and a large number of grown steers. Vealers were –(14-17c) cheaper, yearling steers +2c dearer and yearling heifers firm to +5c dearer. Heavy grown steers gained +3c but medium types eased as much. Cows gained +5c and the large supply of grown heifers were big winners up +(3-5c).

Export steers topped at 190c as those over 600kg averaged 181c (-2c) and steers 500-600kg averaged 186c (+3c). A large number of medium feeder steers 400-500kg averaged 179c (-3c) top 192c while heavy slaughter types averaged 180c (+3c) top 192c. Medium and heavy cows over 520kg gained +5c ave 154c top 160c while of those 400-520kg medium types averaged 147c (+4c) and the good number of light types gained +5c ave 142c top 151c. The large number of heavy grown heifers gained +3c ave 175c top 180c while medium types averaged 167c (+7c) top 175c. Heavy bulls over 600kg gained +9c ave 174c top 188c.

Heavy yearling steers over 400kg to slaughter averaged 193c (+2c) top 208c while medium types under 400kg to restock and feed averaged 200-203c top 215c. Heavy yearling heifers to slaughter over 400kg averaged a firm 184c top 193c while those 330-400kg averaged a firm 192c top 208c and medium heifers under 330kg went to slaughter and feed ave 185c (+5c) top196c.

A few medium slaughter calves sold for 265c while medium vealer steers 200-280kg  averaged 210c (-14c) top 221c to restock and slaughter. Similar vealer heifers went to slaughter ave 189c (-17c) top 198c.

OTH Rates:

By week’s end two tooth steers were still $3.30-$3.35. Jap ox $3.25 but MSA Ox are $3.32-$3.42. Heifers are -5c less. Heavy cows are $3.05. Best 220-240kg cows are $2.85. Top EU steers are $3.55-$3.60. Best bulls $2.67. Best 100-day grainfed steers, 4t are now $3.43, with heifers -5c less. 2t 100-day steers are $3.48. 70-day 2t steers are still $3.48. You can always find a similar OTH price summary to this on the Cattlefacts home page.

Heifers (440 kg plus)

Cows (500 kg plus)

Cows (400 - 520 kg)

Steers (300-400 kg)

Heifers (340-450 kg)

values: nq = (no quote with the same specification in last report), 0 = (no change).