Key points:
- Steer prices converged to within 13¢ of each other, as competition returns from the south.
- The Trade Lamb Indicator lifted to 866¢ (a high not seen since January 2021).
- Cattle slaughter remained flat, but scheduled plant closures eased sheep and lamb kills week-on-week.
Cattle market
The cattle market was relatively positive this week. All indicators performed above last week, bar the Feeder Steer Indicator which eased just 2¢ to 344¢/kg lwt. Yardings stayed relatively flat, lifting by only 1,826 head, despite a number of store sales included in market reports.
Steer prices have converged this week, falling within 13¢ of each other:
- Restocker Steer Indicator = 352¢/kg lwt
- Feeder Steer Indicator = 344¢/kg lwt
- Heavy Steer Indicator at 339¢/kg lwt.
The return of southern processors in Queensland saleyards lifted competition (supporting price), and a renewed interest in restockers supported that flow down. Heavy steers were rewarded in Victoria, with Shepparton and Leongatha performing well.
Sheep market
The sheep and lamb markets were green again this week, despite lifts in supply across all indicators. Outside of the indicators, total yardings lifted 29,144 for 298,737 head. WA remained aligned with seasonal declines in supply. However, conditions across NSW, SA, Tasmania and Victoria continue to push producers to sell, with improved prices and some patchy rainfall lifting confidence.
The National Trade Lamb Indicator lifted 29¢ this week to 866¢/kg cwt. Markets have not performed this well since January 2021. A healthy increase in trade lamb yardings didn't dampen confidence in the market as producers reacted to growing pricing trends. Supplementary fed lambs entering the yards have supplied excellent quality, promoting renewed competition, with fed pens supporting Carcoar, Corowa, Cowra and Ballarat, all tipping 900¢/kg cwt.
The National Mutton Indicator has continued to climb, lifting 41¢ to 483¢/kg cwt, returning to September 2022 prices. Sheep competition was strong in most markets, with condition improvements increasing prices. The Victorian mutton market thrived, tipping 517¢/kg cwt despite over 8,000 lifts in throughput in the state. Processor demand for quality finished stocks was the main driver of price.
Slaughter
Week ending 12 July 2024
National weekly cattle slaughter remained relatively stable, falling by 1,292 head to 138,787 head processed across the week. Despite the slight fall in numbers, it is still well above weekly averages for the year. Victoria (22,372) and SA (3,338) were the only states with a higher throughput than the previous week, lifting by 641 and a small 2 head, respectively. Processing numbers through Tasmania (3,646) and WA (2,336) eased by 82 and 367 head. While the larger cattle-processing states of Queensland and NSW eased between 700 and 900 head for 33,682 and 73,413 head for the week.
Scheduled plant maintenance shutdowns have eased sheep and lamb slaughter by 60,198 head, to 566,236 head. This is now below the weekly average for 2024, however is a usual seasonal trend over winter.
National lamb slaughter fell by 20,686(4%), to 450,982 head. Slaughter eased across all states bar Queensland, which lifted 99 head to 1,689 over the week. WA saw the largest percentage drop, falling 4,394 head to 38,702. NSW Tasmania (9,435), Victoria (229,049) and SA (60,989) also processed less this week than last. Sheep slaughter varied across states. A national ease of 39,512 head to 115,254 was driven by NSW and Tasmanian throughput, both falling by over 50% to 31,400 and 1,822 head respectively. Week-on-week lifts were seen in WA for 16,159 and SA for 13,055, and a significant 17% rise in Victoria to 52,791 supported the national figure.
Attribute to: Erin Lukey, Senior Market Information Analyst
