By Simon McKittrick
It’s been a busy week across all markets, with a few ups and downs depending on where you’re selling. Numbers are on the rise, the US is still hungry for Aussie beef, but dry conditions in parts of NSW VIC & SA are keeping things interesting.
Let’s break it down.
The EYCI is sitting around the 664c mark, while the Aus dollar is sitting just over US 62c.
- Domestic Feeder Steer @ $3.80/4.10
- Domestic Feeder Heifer @ $3.30/3.50
- Heavy Feeder Steer @ $3.60/3.80
- Angus Heavy Feeder Steer @ $3.90/4.20
- Cow @ $5.80/6.00
- MSA Steers @ $6.50/7.20
Store Markets – More Cattle Coming Forward
We saw a good lift in store cattle numbers this week, with Auctions Plus reporting a 27% increase in offerings. Clearance rates were sitting around 51%, so not everything found a home. Light steers (200–280kg) saw a nice bump in price, averaging $1,083 per head, while heavier steers over 400kg eased slightly to $1,668. The dry conditions in some areas are pushing more cattle onto the market earlier than usual, which could weigh on prices in the weeks ahead.
Feedlot Rates – Holding Steady for Now
Feedlot buyers are still active, but they’re being a bit picky. The heavier end of the feeder steers held their value, but demand for lighter weights softened slightly. Grain prices are creeping up, which means margins are getting tighter for lot feeders. If we don’t see some decent rain soon, that could put more pressure on feeder prices.
Slaughter Prices – Processors Keeping Busy
Kill numbers are strong, with weekly slaughter rates sitting around 143,000 head—16% up on last year. Some processors are even running extra shifts to keep up. Prices have held firm despite plenty of cattle coming through, but there’s a bit of concern about demand from Japan and Korea slowing down.
Looking Ahead – What’s on the Radar?
More Cattle, Softer Prices? – If the dry spell continues, more cattle will hit the market, which could put pressure on store and feeder prices.
US Beef Tariffs – Will They Bite? – The US is our biggest beef buyer right now, but if they slap new tariffs on imported beef, it could throw a spanner in the works. That might mean processors take a hit, or we have to shift more beef to China and other markets. Worst case? We see an oversupply locally, dragging prices down.
Feed Costs – Watch This Space – Rising grain prices could slow down feedlot demand, making it tougher to shift feeders at strong prices. If we get a decent break in the weather, that could turn things around.
Global Demand – A Bit Wobbly – Economic uncertainty in Japan and Korea is making some exporters nervous, but overall, international demand for Aussie beef is still solid.
Final Thoughts
Over the next few weeks, store and feeder markets could take a slight dip if more cattle hit the market. Slaughter prices should stay steady for now, thanks to strong export demand. The big wildcard is those potential US tariffs—if they come in, we might see some market shifts. Keep an eye on trade news and as always, a bit of rain would go a long way to helping everyone out.