In this week’s market update, steer prices showed remarkable convergence, with only 13c separating prices across the board as southern competition re-entered the market.
Notably, the Trade Lamb Indicator surged to 866c, reaching heights unseen since January 2021. While cattle slaughter numbers remained steady, the easing of scheduled plant closures resulted in a week-on-week decrease in sheep and lamb kills. Cattle market The cattle market was relatively positive this week, according to MLA’s Senior Market Information Analyst Erin Lukey.
All indicators performed above last week, bar the Feeder Steer Indicator which eased just 2c to 344c/kg lwt. Yardings stayed relatively flat, lifting by only 1826 head, despite a number of store sales included in market reports.
Steer prices have converged this week, falling within 13c of each other:
Restocker Steer Indicator = 352c/kg lwt
Feeder Steer Indicator = 344c/kg lwt
Heavy Steer Indicator = 339c/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 29c this week to 866c/kg cwt. Markets have not performed this well since January 2021.
A healthy increase in trade lamb yardings did not 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.
The National Mutton Indicator has continued to climb, lifting 41c to 483c/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 517c/kg cwt despite over 8000 lifts in throughput in the state. Processor demand for quality finished stocks was the main driver of price. Slaughter (Week ending July 12, 2024) National weekly cattle slaughter remained relatively stable, falling by 1292 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 (3338) 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 (3646) and WA (2336) eased by 82 and 367 head.
Scheduled plant maintenance shutdowns have eased sheep and lamb slaughter by 60,198 head, to 566,236 head.
National lamb slaughter fell by 20,686(4%), to 450,982 head. Slaughter eased across all states bar Queensland.
Victoria (229,049) and SA (60,989) 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 1822.
Week-on-week lifts were seen SA for 13,055, and a significant 17% rise in Victoria to 52,791 supported the national figure.
