Richard Koch, Elders

Elders business intelligence analyst Richard Koch provides this region-by-region summary of recent cattle price trends – this week focussing on slaughter cows….  

RECENT sharp price rises for slaughter cattle seem to have done their job of attracting a lift in offerings. Saleyard values, particularly for cows, had surged in front of direct-to works quotations to be in the mid $6s/kg dw (mid $3/kg) and higher on isolated sales vs $5.80-6.20/kg dw at the works.

As more cattle came forward and processors extended their booking schedules, prices have steadied.

Chart shows the national cow saleyard indicator 2024-25 vs 2023-24 and 7yr avg. Source: MLA

Large cow yardings are meeting a softer trend at saleyards this week, in NSW sales at Tamworth and Forbes values were back 20-30c/kg lw yesterday to leave cows at $2.80-2.90c/kg lw – around where they started last week. Sales held this morning have shown a similar trend.

Producers chasing the cow money are expected to supply yards heavily this week with dry conditions and the high prices encouraging producers to lighten off. As an indication more than 2000 cows are booked for sale at Mortlake in the western district of Victoria this week, about double normal for this time of year.

A softer 5-10c/kg lw trend was also evident in northern feeder steer markets with prices back to $3.75-3.80/kg lw Downs on crossbred feeders with the premium to black cattle starting to widen on the expectation that supplies of these cattle across the south may tighten.

Cattle continue to come forward in Queensland, despite good February rain, which is pressuring prices. In NSW, while saleyards were a bit cheaper there has been sustained buying out of the paddock at solid rates with a big order for EU steers to the Riverina at $4.20c/kg lw the best of it.

Feedlot buyers were active in the store cattle sale in Naracoorte last week which saw prices hang onto recent gains despite numbers ballooning from 1200 head at the start of advertising to 3900.

They bought good cattle of all weights paying $3.80-4.10 for steers and $2.80-3.30/kg on the heifers with black cattle achieving the higher prices. Heifers suitable for feeding for the domestic trade are selling well, however, light heifers which require further backgrounding are getting hard to sell again.

South Australian agents say these big store yardings are cattle that would normally have been kept to grow out as heavy feeders during winter. These cattle just won’t be here in any numbers in a few months.

A dry week in Tassie has the store market a bit softer with buying becoming more selective.  Slaughter markets have held up around last week’s values $6.80-6.90/kg dw on program cattle and $5.50-5.80/kg dw on cows. The feeder market is around the same as other states at $3.80/kg lw up to $4/kg for blacks. Preg tested empty heifers are starting to come forward and selling to feedlots targeting the domestic trade at $3-3.30/kg lw. But anything that doesn’t fit are hard to sell.

Markets continue to be under the influence of dry conditions and low water reserves which is providing for a good supply of cattle of most descriptions. Even agents in QLD are reporting that stock water is becoming an issue with the lack of runoff rain in many districts. Cattle prices will continue to fluctuate with availability as producers await to see what the season holds. Another good widespread rain across NSW/QLD on recently sown fodder crops would provide a good body of winter feed which would slow marketings.

Western and southern NSW, VIC and SA need a strong early break to limit forced cattle sales. Even so, many of these areas will be well down on numbers during late autumn and winter as most stock has been turned off early or has left the area to go into feedlots or to other backgrounders.

In Western Australia, the cow market continues to struggle, with the best heavy cows $4.80/kg lw at abattoirs and $2.20-2.40/kg lw at the yards, with works booked out till end of March.

High WA cow slaughter this year is due to lower-than-normal scanning rates and very dry weather and lack of stock water across southern WA. A late autumn break saw cows joined in less-than-ideal condition resulting in poor scanning rates.

Normally there are few problems slaughtering cows in WA in March as supplies of southern cows generally tighten ahead of the run of cows out of pastoral areas that starts from the Kimberley in April and then moves to the Pilbara and Gascoyne. Due to the good season, cows from the Pilbara and Gascoyne will be delayed by a month which will give processors a chance to catch up but could also see these cows run into the start of next season’s southern cow kill.