National cattle price indicators have averaged around six percent lower in 2012 compared to last year, according to Meat & Livestock Australia’s National Livestock Reporting Service.

MLA says several factors combined to place downward pressure on national price Indicators, including dry conditions during winter and spring which resulted in more cattle heading to works in October and November, and wavering competition from restocker and feeder buyers as the season deteriorated. 

The trade steer indicator slipped 5pc from its 2011 average to 371c/kg cwt in 2012.

Despite the fall, this is still the third highest yearly average carcase weight price paid for trade steers in the past 10 years, behind 2011 and 2005.

The national average medium steer indicator was back 4pc year-on-year, averaging 332c/kg cwt for 2012.

In comparison to previous years,  the average price during 2012 ranks as the third highest average since 1999, as feeder buyers remained active despite seasonal conditions deteriorating throughout the second half of 2012.

Heavy steers followed a similar trend, reaching a high of 344c/kg cwt in 2011, to be back 2pc, averaging 337c/kg during 2012. Soaring grain prices had feeder buyers selective on purchasing suitable lines, with a lack of rain ensuring tight supplies of suitable cattle.  

Although medium cow prices remained fairly resilient through spring, the average yearly indicator was back 6pc in comparison to 2011 levels.

The strengthening manufacturing beef market assisted prices.

The 2012 average was the fifth highest average price over the past 13 years, averaging 278c/kg cwt.