Key points:
- Cattle yardings finished the week with volumes 58% or 22,000 head above the 2023 weekly average.
- Resilient heavy steer prices this week indicate processor demand and plant capacity remains strong.
- Restocker lambs were the highlight this week despite a strong increase in supply.
Cattle
Cattle supply kicked back into gear strongly this week with total national yardings reaching their highest level since late November 2020 at 60,254 head. This volume is 58% or 22,000 head above the weekly average for 2023.
Across NLRS reported markets, quality as the hallmark of price performance continues, with buyer demand dependent on the article of cattle or end market. Supply is affording buyers the luxury of choice and therefore depressing demand although finished cattle prices continue to outperform the restocker/feeder markets. Indeed, after reasonable April beef exports, this processor demand should continue to translate into a strong recovery in export volumes in May.
In line with improved on-farm supplies of young cattle, restocker demand continues to soften, despite a general autumn break for most cattle regions. The restocker yearling steer price softened a further 16c or 4.1% to finish the week at 372c/kg lwt. The indicator reported increased supply of 23% week-on-week.
Feeder prices held firm week-on-week, registering a slight improvement, despite a 54% or 2,900 head increase in throughput. Indicating demand for feeder cattle remains robust and filling pens and increasing utilisation rates to meet customer demand further down the supply chain remains front of mind for the lot feeders. The southern selling centres such as Wagga Wagga and Carcoar saw strong premiums paid for feeder cattle.
Finished cattle prices held this week, with the National Heavy Steer indicator finishing firm week-on-week at 329c/kg lwt, despite a 125% increase in supply. Indicating processors are continuing to compete heavily on finished cattle with capacity available in plants. An improvement in slaughter numbers as a result of this activity next week may eventuate.
Sheep and lambs
Weekly lamb yardings mirrored the rest of the market this week, registering a strong 68% or 78,122 head uptick in supply. This was the second highest weekly supply of lambs at 192,000 head since early March.
Mutton volumes lifted to deliver 110,000 head to the yards, an increase of 57% or 40,000 head week-on-week. This was the highest mutton yarding in nearly two months.
Finished lamb prices were placed under the most pressure, whilst restocker and merino lambs remained resilient and recovered most of last week's losses despite a strong uptick in supply.
The restocker lamb market seemingly needed a full selling week to return for its prices to improve, with the indicator lifting 14% or 64c to end the week at 518c/kg cwt. This was despite a 150% or 22,000 head increase in throughput. Strong numbers of restocker lambs sold will in turn drive higher turn-off as the year progresses of finished lambs for processing, ensuring slaughter numbers should remain strong for the remainder of the year.
Trade lamb prices in the national indicator fell 17c or 2.1% to end the week at 667c/kg cwt. This is the lowest price the national indicator has registered since the exotic disease scare which the market experienced in August 2022.
Supply clearly played a major role in the price decline, with an increase through the indicator of 74% or 19,000 head increase in supply.
Robust export market performance in April translated into early May saleyard demand for the Mutton indicator, despite a weekly improvement in supply of 20% or 8,884 head. The indicator remained firm this week, registering a 2c improvement in price to end the week at 438c/kg cwt.
Looking ahead
The weeks ahead will indicate if this current supply can be sustained and if it can, export market demand and continued confidence in growing the flock and herd across the country alongside filling feedlot pens will confirm buyer demand.
Quality, finish and weight will continue to dictate market performance for lines of stock as the industry moves towards winter.
Sheep Producer Intentions Survey
The May Sheep Producers Intention Survey (SPIS) is out currently for the first fortnight in May and is a critical data point from producers. It is vital to industry and delivers insights to inform business decisions.
The survey looks at number of breeding ewes on hand, lamb sales, producer sentiment, breed data and breeding intentions.
The survey provides critical insight into producer decision making and MLA's Market Information team encourages all sheep producers to participate fully to ensure the survey is as accurate, reliable and detailed as possible. Increased participation will deliver better outcomes for industry.
To complete the survey, click here
