World Cattle News:

[Mustang Sally Farm]

CME: Lack of Processing in Canada and Feed Situation Altering Spring Cow Slaughter
09 May 2013
 

US - Cattlemen in Oklahoma/Texas are having to sell cows for meat due to fodder shortages meaning cow slaughter is up 7 per cent last year. But without Canadian cow imports Steve Meyer and Len Steiner write that cow slaughter would be down on 2012.

US cow slaughter continues to be well above 2012 and 2011 levels. As we have noted before in this report, the surge in cow slaughter is in large part due to more dairy cows coming from Canada.

Lack of cow processing capacity there has send more Canadian cows, especially more dairy cows, to the US market. Consider the following: Since the beginning of the year through April 20, Canada had shipped 98,765 slaughter cows to the US, 54,059 head or 121 per cent more than the same period a year ago.

During this same period, overall US cow slaughter (which includes Canadian cows slaughtered here) has been 1.973 million head, about 31,539 or 1.6 per cent higher than the same period a year ago. If you adjust for the additional number of Canadian cows that have come into the US, US cow slaughter actually is below year ago levels todate.

More recently, however, we have noted an increase in the number of US cows, especially in the number of US beef cows coming to market. Since early March through April 20, there have been 869,503 beef and dairy cows that have come to market, 57,157 head or 7 per cent more than a year ago.

Dairy cow slaughter during this period has been 3.9 per cent higher than last year while beef cow slaughter has increased by 10.6 per cent compared to last year. Higher Canadian cows have accounted for about 42 per cent of the increase in cow slaughter since early March.

Even when adjusting for those extra Canadian cows, domestic cow slaughter since early May has been 4.1 per cent larger than a year ago. Coming into this year, the expectation was for US cows slaughter to decline significantly compared to a year ago.



 

In part this was due to the changing profitability in the cow-calf sector, with record high forward live cattle prices and much higher feeder cattle values. The feeder cattle market has declined significantly however, which certainly has weighed on the decision to retain cows.

More importantly, limited feed in key production areas, especially the Great Plains as well as in the Texas Panhandle and Oklahoma, have forced producers to sell. Some accounts indicate that producers are splitting mother/calf pairs and selling cows early due to the lack of feed.

Hay costs were a concern coming into this year and the long winter and cool spring, with snow in some areas by late April), further exacerbated the situation. Beef cow slaughter in region 6, which includes Texas and Oklahoma has average 12.3 per cent above year ago levels since early March.

While producers have shown a willingness to try and rebuild their herds, as indicated in the January 1 inventory report, they will need feed in order to make those plans reality. Further complicating the supply picture for analysts this year will be the decision by USDA to eliminate the July 1 inventory survey.

We will likely have to wait until early next year to get a full picture of the herd rebuilding activity and as to whether the declines in US beef production will be extended further out into the future.

In the more immediate term, however, the increase in US cow slaughter has had a significant impact on the price of lean beef coming to market.

While we don't think that the sharp decline in 90CL beef prices (see chart) is entirely due to the rise in domestic cow slaughter, it certainly is a factor. Slow foodservice sales in the first quarter of the year meant that as of April 1, end users had a bit more product around them than they expected.

Also, some had anticipated higher lean beef prices in the spring and likely had booked a portion of their needs. With little pent up demand and high freezer stocks, the increase in domestic cow slaughter caused lean beef prices to decline some 9 per cent at a time when it should have been higher for Memorial Day needs.



Daily Livestock Report - Copyright © 2008 CME. All rights reserved.

[Mustang Sally Farm]

MLA: Australian Cattle Market Summary
17 May 2013

Meat & Livestock Australia
 

AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian territory by Meat & Livestock Australia (MLA).

South Australia

Smaller yardings

There was some welcomed rainfall this week, with producers who received steady soft rain a couple of weeks ago benefiting the most. The rain combined with the lower saleyard prices may have kept some cattle in the paddock, or numbers are starting to come back to their usual smaller winter yardings.

The SA LE’s slightly larger yarding featured improved quality runs of young cattle and cows, attracting stronger competition from the usual trade and export buyers at improved prices. Feeder and restocker orders were active sourcing light and medium weight yearling steers and heifers. The 2 and 3 score medium and heavyweight cows were generally dearer.

Naracoorte’s similar numbered very mixed yarding contained a mixture of local and pastoral bred cattle from Roxby Downs. These sold to selective competition from a small number of SA and Victorian buyers at generally lower prices, with isolated sales being dearer. Restocker and feeder orders were also active at fluctuating prices. Cows were cheaper despite some good quality heavyweights being yarded. In a strange twist B-muscled bulls were up to 15¢/kg dearer.

A very small mixed quality yarding at Mt. Gambier sold at fluctuating prices as the operating buyers tried to source supplies. Feeder and restocker orders were active on a wide range of quality of young cattle and cows.

Fluctuating prices

The selective trade, export, feeder and restocker competition on the mixed quality runs yarded led to fluctuating prices being paid this week.

Small numbers of vealer steers to the trade sold from 165¢ to 216¢, at prices 3¢ to 9¢/kg dearer. Vealer heifer C and B-muscled sales to the trade were from 144¢ to 195¢, to be generally 2¢ to 17¢/kg dearer.

Small yardings of C3 and B-muscled yearling steers to trade inquiry sold between 150¢ and 210¢, to be 10¢ to 14¢/kg dearer. Feeder orders sourced C2 and B1 steers from 150¢ to 175¢, or 8¢/kg cheaper. Yearling heifer C3 medium and heavyweights were unchanged to 4¢ dearer, selling from 140¢ to 190¢/kg.

Small runs of C2 and C3 grown steers and bullocks sold between 155¢ and 181¢/kg. The C-muscled grown heifers sold from 100¢ to 148¢, with the C3 sales 5¢/kg dearer. Cow prices were erratic as most 2 to 6 scores sold from 65¢ to 115¢ to processor, or mainly 150¢ to 230¢/kg cwt. Restockers paid from 82¢ to 114¢ for D2 and C2 medium and heavy beef cows at dearer levels.

Queensland

Supply reduces

The supply of stock varied from centre to centre, however the major markets experienced a decline in numbers and reduced overall supply at physical markets covered by MLAs NLRS by 12%. Some patchy rain in places had a small effect on reducing numbers, and the Longreach sale has now been cancelled for two consecutive weeks.

Young cattle continued to dominate the selling pens and there was a dramatic drop in the supply of grown cattle. The small selection of cows was dominated by poor condition classes, while the better heavy lines were scarce. The usual trade and feeder operators were present at most markets. Export buyer attendance continues to be erratic and while a full gallery of buyers was present at Dalby, not all were operating.

Young cattle prices continue to lower

The isolated falls of rain lifted restocker enthusiasm in places, and prices for some selected lines experienced a small improvement. However, all other classes of young cattle continued to suffer price reductions of 4¢ to 10¢ with poor quality lines 15¢ to 20¢/kg cheaper.

A large number of lightweight yearling steers returned to the paddock at 169¢ and well bred lines experienced a small improvement to reach 190¢/kg. A small sample of medium weight yearling steers to feed averaged 7¢ to 12¢ less with most around 150¢ with sales to 160¢/kg. Heavy weights to feed lost 4¢ to also average 150¢/kg. The supply of yearling heifers exceeded demand and a large number of lightweights averaged between 120¢ and 130¢/kg.

The short supply of heavy grown steers to export slaughter averaged 153¢ and made to 164¢/kg. Bullocks averaged 152¢ with the very isolated sale of some supplementary fed classes reaching 167¢/kg.

Bullocks over 750kg lwt were discounted to average 138¢/kg. Medium weight 2 score cows averaged in the mid-60¢ range and 3 scores 93¢/kg. The reduced number of good heavy cows averaged 115¢ and made to 125.2¢/kg.

Western Australia

Unseasonal rainfall in the north

Seasonal fortunes in the traditional cattle grazing regions of southern WA increased over the past week with solid rainfall levels again recorded. This increase in soil moisture levels has been accompanied by mild and generally warm temperatures which have combined to greatly aid both germination and pasture growth.

Areas in the Kimberley and Pilbara also enjoyed unseasonal solid falls of rain this week further adding to their seasonal fortunes. Calving activity remains high in the south with most herds now well into this process. Supplementary feeding regimes remain in place but with the current rate of pasture growth this should cease in most areas in the near future, while mustering activity in the north continues to gain momentum.

Yardings slightly increase

Physical saleyard numbers were marginally higher this week due to larger supplies at Muchea. The Great Southern yarding remained similar and reasonable, while the southwest sales were again very small.

Pastoral supplies remained moderate for this time of year and should increase in the short term. The numbers of prime trade and heavy weight steers and heifers remained limited at all three markets.

Young store grades, sourced from both local and pastoral regions, remained healthy with fair supplies of cows again available. The tight supplies of prime trade weight yearling steers and heifer continued to record a solid and firm interest from local processors and retailers.

Demand holds

Heavy weight steers and bullocks were predominately sourced from pastoral regions and were of mixed quality with prices easing moderately. Demand for all weight ranges of local store steers and heifers were maintained under continued feeder and restocker demand. Processor demand was unrelenting on heavy weight local and pastoral cows with no change realised in price, while heavy weight bull prices lost some ground comparative to the previous week.

New South Wales

Consignments decline

With rainfall recorded around parts of the state cattle numbers dropped 25% at MLA NLRS markets week-on-week. Wagga and Goulburn were the exceptions as Wagga increased 20% and Goulburn lifted 5%. All other selling centres lost numbers with Dubbo yarding 2,000head less, while consignments at CTLX Carcoar dropped 1,000 head compared to the previous market.

Gunnedah yarded 48% less as the Hunter markets both penned fewer cattle, with Scone easing 42% and Singleton penned 50 head less. The northern sales of Casino and Armidale along with Inverell all yarded significantly fewer cattle.

Quality continues to be mixed

The majority of markets reported mixed quality offerings. Younger cattle continue to dominate supply as vealer heifers were penned in greater numbers compared to the steer portion. There were 3,185 yearling steers compared to 2,594 yearling heifers with the majority selling to restocker and feeder orders.

Heavy weight prime conditioned grown steers and bullocks were limited with around 520 suitable for slaughter orders. The bulk of older cattle penned fell into the cow categories as 3,556 were supplied at MLA NLRS markets.

Values sold to mixed trends

Younger cattle sold to mixed trends as medium weight vealer steers returning to the paddock lifted 2¢ to average 153¢ after topping at 187¢/kg. The same weighted heifer portion to the trade and restock sales remained firm to average 136¢/kg. Prime conditioned heavy weights suitable for butcher orders continue to sell to strong competition.

Yearling steers to restockers and feed trended slightly dearer as the well finished heavy weights to the trade struggled to remain firm to ease 3¢/kg. The heifer portion on average remained firm to a shade cheaper. Heavy weight grown steers and bullocks trended cheaper, however only marginally. Cows continue to struggle in the competition to ease back another 5¢ to 7¢/kg.

The 2 scores averaged 76¢ as the better covered 3 and 4 scores ranged from 62¢ to 118¢/kg. Heavy weight bulls on average sold at firm to slightly cheaper prices as the best muscled pens topped at 166¢/kg.

Victoria

Supply down and quality barely holding on

Some markets this week, including Pakenham and Wodonga on Tuesday, had only half sized yardings, while two or three others kept similar numbers to the previous week. Total throughput at markets covered by MLA’s NLRS came back by 31% week-on-week.

Lower supply of cattle could be attributed to the recent lower prices, coupled with scattered showers since last Sunday night. Quality has generally remained plain with cattle in mainly lean condition. Most of the better finished young cattle and grown steers are believed to be coming forward off supplementary feeding as pastures are all but depleted in most districts. Many of the cows at markets are in 1 score condition as feed is scarce and the nights are longer and colder.

Near usual buyer support at markets

Buyers supported their usual markets however not all the regulars were at Wodonga’s cow sale on Wednesday or at Bairnsdale. Restocker competition was generally similar however locals were more active at Wodonga and Bairnsdale due to recent falls.

Mixed price trends

Markets earlier in the week continued the recent cheaper trends, but as the yarding sizes diminished buyers generally competed strongly to secure supply. By Thursday the cows, especially the light weight and light conditioned types, jumped 10¢ and up to 40¢, while most other categories of cattle were lifted 5¢ to 10¢/kg.

The C3 heavy weight steer vealers made 4¢ more at 170¢ to 220¢ while the heifer portion was up 12¢ and sold from 152¢ to 220¢/kg.

The C3 heavy weight yearling steers were at 145¢ to 201.2¢, up 2¢, while the best of B3’s made 218.6¢/kg.

The yearling heifers were from 124¢ to 200¢ and gained 10¢ with the B3’s also topping at 218.6¢/kg.

Grown steers sold from 145¢ to 195¢ for most of the C3 and C4 grades and they lifted 5¢/kg. Grown heifers of the D3 grade made 105¢ to 167.6¢ to average 12¢/kg higher. Light weight E1 cows lifted a huge 25¢ to make from 50¢ to 85¢/kg.

The D1 medium weights were 5¢ higher at 52¢ to 102¢/kg. Heavy D1 and D2 Friesians gained 3¢ to sell between 55¢ and 112¢/kg. The 3 to 5 score beef cows were mainly 3¢ to 5¢ cheaper for the C muscled grades topping at 135¢ while crossbred D muscle cows sold from 86¢ to 125¢/kg.

[Mustang Sally Farm]

Feedlot Slaughterings Will be Front Loaded
24 July 2013


US - Although cattle on feed results were close to expectations, Steve Meyer and Len Steiner say that close data analysis of weights shows that slaughter numbers will be 'front loaded'.

The latest USDA cattle on feed report continued to illustrate the impact that high feed costs have had on the cattle business, write agricultural markets analysts Steve Meyer and Len Steiner.

Faced with a sharp increase in feed costs and the resulting jump in the cost of gain, producers have sought to maximize the pounds they put on cattle outside of feedlots.

Cattle placements last summer declined by almost 1.3 million head compared to the previous year, slowing down the flow of feeder cattle into feedlots. The result of this was evident in the January 1 survey, showing that despite an ever shrinking calf crop (down 2.9 per cent  in 2012) the supply of cattle outside of feedlots as of January 1 was estimated at 25.556 million head, 175,000 head or 0.7 per cent larger than the previous year (source: LMIC).



 

Those extra feeders have been coming to market at weights well above year ago levels. In the past six months, feedlots have placed 10.643 million head of cattle on feed, about 21,000 head more than a year ago. But keep in mind that imports of feeder cattle from Mexico declined sharply
in the first six months of the year.

When accounting for the change in feeder imports, placements of cattle from US operations actually have increased significantly compared to a year ago. In part this is due to those extra cattle outside of feedlots at the beginning of the year. It also suggests that producers continued to place females on feed rather than hold them back.

In the first six months of the year, US imports of Mexico feeder cattle (based on weekly data) were 496,843 head, down about 406,000 head (-45 per cent ) compared to the same period a year ago.

Unfortunately USDA has discontinued the July 1 cattle survey, so we will have to wait until early next year to understand the full scope of the changes taking place. Suffice to say, however, that feeder supplies going forward will be notably tighter, paving the way for smaller placements and reduced slaughter for 2014.



 

If lower feed costs materialize, we could see supplies decline further as the number of heifer placements declines. The latest cattle on feed survey results were close to analyst estimates so on the face of it the report could be construed as neutral.

However, the weight distribution of cattle placed on feed in June implied that slaughter numbers will be front loaded. Total placements in June were estimated at 1.587 million head, 4.6 per cent less than a year ago.

Analysts polled ahead of the report were expecting placements to be down 5.1 per cent . Almost 40 per cent  of the cattle placed on feed in June were over 800 pounds. Indeed, in the past three months, placements of heavy feeders have accounted for about 39 per cent of all placements.

This implies that supplies of cattle coming to market this fall may not be as small as earlier expected. On the other hand, we could see a marketing hole develop going into the holiday season and early next year.

The market has already acknowledged this dynamic, with the spread between Oct-Aug spread now at $4.25 compared to around $3.00 in early May. The difference between February and October cattle also has been trending higher and the latest feedlot survey results will do little to change that trend.

Total feedlot supplies as of July 1 were 10.368 million head, 3.2 per cent lower than a year ago and 0.2 per cent points lower than prereport estimates. Placements are expected to remain limited in the next few months, limiting the number of cattle coming to market.

Some forecasts call for slaughter by late 2013 and early 2014 to fall some 6-7 per cent from year ago levels. In part this reflects the lower feedlot inventories but also the expectation that lower feed costs will reduce the number of cows coming to market later this year.

[Mustang Sally Farm]

MLA: Weekly Cattle Summmary02 August 2013 AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian territory by Meat & Livestock Australia (MLA).South Australia Supply slightly higher Total cattle throughput this week in SA lifted 22 per cent to around 2,605 head. Mount Gambier increased there supply by 17 per cent, while Naracoorte and the SA Livestock Exchange yarded 2 per cent and 8 per cent more cattle, respectively. Millicent yarded similar numbers to a few weeks ago, to total 280 head. Less supplementary fed lines Many cattle lacked the finish of the previous week at the SA Livestock Exchange, apart from a consignment of supplementary fed lightweight heifers that sold to solid demand. Feeders buyers were active on well-bred lines of lightweight steers, however lightweight heifers to feed decreased in price. Light weight cows benefited from some restocker interest. Supplementary fed lines at Naracoorte decreased week-on-week, while cows were in increased demand. Feeder and restocker buyers at Mount Gambier were active on any store condition young cattle available, while a better selection of grown steers and cows attracted stronger bidding. There was limited restocker and feeder interest at Millicent, with most categories selling to the trade. Prices varied Heavy weight vealer steers to slaughter were 7¢ lower on 187¢, while heavy weight vealer heifers were 12¢ cheaper on 183¢/kg. Medium weight yearling steers to feed were 7¢ higher on 184¢, while heavy weight yearling steers to slaughter were 11¢ cheaper on 182¢/kg. Heavy weight yearling heifers to process decreased 8¢ to 179¢/kg. Heavy weight grown steers to slaughter were unchanged on 185¢/kg. Medium weight D1 cows to slaughter eased 4¢ to 120¢, while the D2’s gained 8¢ to average 136¢/kg. Heavy weight D3 cows to process increased 6¢ to average 148¢/kg. Heavy weight B2 bulls eased 1¢ to settle on 140¢/kg. New South Wales Cattle numbers lift Consignments gained 23 per cent at MLA’s NLRS reported markets week-on-week. Wagga together with Tamworth and Forbes commenced the week with Wagga penning 27 per cent extra cattle, while Tamworth lifted 11 per cent and Forbes doubled their numbers. CTLX Carcoar gained 23 per cent, however Armidale defied the trend to slip 32 per cent week-on-week. Scone and Singleton trended differently, with Scone yarding much the same numbers, while Singleton lifted their consignments by 45 per cent compared to the previous small market. Dubbo finished the week penning 30 per cent extra cattle for 3,440 head. Quality was mixed The majority of markets reported a mixed quality offering. Other sales reported numbers of supplementary fed and prime conditioned younger cattle off crop, in their yarding. Younger cattle suitable for lot feeder and restocker purchases, continue to dominate market percentages. Yearlings again outnumbered the vealer categories, with the bulk being yearling steers. Cow categories made up the majority of the older cattle penned, with around 3,488 head offered, an improvement of 29 per cent, week-on-week. Prime conditioned heavy weight steers lifted in number, to around 870 head. Prices showed little change Throughout the state the younger steers sold at similar prices. Medium weight vealer steers returning to the paddock averaged 185¢, after reaching 205¢/kg. The same weight heifer portion to processors topped at 177¢, before settling around the 160¢/kg range. Lightweight yearling steers to restocker orders reached 217¢, as the medium weights averaged 190¢/kg. The best muscled lot to the butchers reached 226¢/kg. Prime heavy weight grown steers and bullocks to slaughter sold close enough to firm, as the best reached 198¢/kg. Cows struggled at some markets, to maintain their firm prices and slipped 4¢ to 5¢/kg. The plainer 2 scores averaged 110¢, while the better covered 3 and 4 scores ranged from 101¢ to 158¢/kg. The better muscled heavy weight bulls averaged 160¢/kg. Queensland Consignments increase A combination of a return of Longreach into the selling program following the rain reduced yardings the previous week, lifted overall supply at physical markets covered by MLAs NLRS by 60 per cent. Once again young cattle made up the vast majority of yardings with 50 per cent of the state now drought declared. Over 1,100 calves from drought affected areas of the state were yarded as producers offload lightweight lines as feed levels become an issue. A relatively small plain quality yarding of heavy grown steers and bullocks were penned along with a fair number of a mixed quality cows. Restockers displayed more interest at some markets early in the week however as the week progressed and more numbers became available buyers were more selective. Prices ease for young cattle as supply lifts The supply of calves to restockers exceeded demand an average prices eased by 14¢ to 15¢ with the very occasional sale to 206.2¢/kg. Vealer heifers to local and southern processors improved 3¢ to average 155¢ while butchers at Warwick paid to 215.2¢/kg. Some well bred lightweight yearling steers to feed improved in price to average 180¢ with sales to 195.2¢, while the increased number of lightweight yearling steers to restockers struggled to maintain a firm trend at 174¢, with D muscle lines at 150¢/kg. Heavy weights to feed generally sold close to 160¢ with a consignment of well bred lines reaching 176.2¢/kg. Lightweight yearling heifers received strong support from restockers to average close to 147¢, while D muscle lines continue to sell in the 120¢/kg range. Export prices fade Heavy grown steers and bullocks experienced a mixed trend as the week progressed. Values were generally firm to dearer at markets early in the week however by midweek with some processors not operating to full strength prices fell by 1¢ to 5¢/kg and greater losses would have occurred without southern processor support. Heavy grown steers average 163¢ and made to 167.2¢ while the bullock portion made to 169.2¢ to average 160¢/kg. Medium weight 2 score cows generally sold close to firm at 100¢, while good heavy cows lost 2¢ to average 123¢ with the occasional sale to 137.2¢/kg. Victoria Yardings lower Total throughput decreased 11 per cent this week to total 9,323 head. Ballarat and Camperdown experienced the biggest fall in numbers, down 38 per cent and 36 per cent respectively. Colac and Leongatha both reported a 14 per cent decrease, while Pakenham yarded 12 per cent more and Bairnsdale had very similar numbers. Quality sees demand fluctuate The majority of centres reported plain or mixed quality yardings this week. Demand was variable, with good lines of young cattle meeting a slightly dearer trend, while export consignments were generally weaker in price. Consignments at Ballarat, Colac, Leongatha, Warrnambool and Wodonga all sold to the usual panel of buyers. However, two exporters were absent at Camperdown this week and, with limited suitable cattle on offer, restocker and feeder buyers were fairly selective. Pakenham and Bairnsdale also experienced weaker demand and while the usual buying group was present, not all were operating. Export quality was not as good as the previous sale in Shepparton, seeing export buyers reserved. On the other hand, stronger restocker interest was reported at Ballarat and Pakenham. Prices ease on most lines Heavy weight C2 vealer steers to processors were slightly cheaper, easing 2¢ to sell at an average price of 186¢/kg. Medium weight C2 heifers lost 4¢ to settle on 180¢, while heavy weights gained 4¢ and averaged 172¢/kg. Medium weight C3 yearling steers to slaughter were up 6¢ and made 201¢, with the heavy weight C3’s up 4¢ to return vendors 197¢/kg. The medium weight C3 and C4 grown steers were firm in price, making 188¢ and 192¢, respectively. Light weight D2 manufacturing steers were also close to firm, averaging 157¢, while the D3’s were 7¢ cheaper, making 176¢/kg. Medium weight D1 cows lost 10¢ to settle on 115¢, while heavy weights were back 8¢ to make 126¢/kg. Western Australia Southwest enjoying moderate seasonal levels The key cattle producing areas in the southern WA Ag districts recorded further reasonable rainfall this week, boosting their seasonal conditions thus far through winter. With several cold fronts experienced, registered temperatures lifted to moderate levels with the weekend forecast predicting temperatures above 20 degrees. The combination of the higher moisture levels seen throughout July coupled with warming temperatures should greatly aid feed growth levels. Conditions in the far north remain solid following on from the unseasonal wet start to winter this year, while mustering activity in the north remains steady. Consignments decline There was a reduction in physical market numbers this week, with both Muchea and Great Southern’s yardings lower than the previous week, while the southwest sale remained minimal in its numbers. There were fewer supplies of pastoral cattle offered in southern markets this week, while the volumes of local trade and heavy weight steers remained tight. Cow numbers were only moderate, with fewer supplies of local yearling store grades also recorded. The limited supply of heavy weight steers and bullocks were predominately sourced from pastoral regions and continued to enjoy steady processor inquiry, with the small numbers making quoting difficult. This was also the case with heavy weight grown heifer sales, while the cow market enjoyed a slight strengthening in local and export processor demand. This could be reflective of the moderate supplies, with prices marginally dearer than the previous week’s quotes. This was also the case in heavy weight bull classes from local and pastoral origins. Restocker and feeder buyers remain subdued Local yearling store quality and weight remained mixed.

[Mustang Sally Farm]

MLA: Weekly Cattle Summary
09 August 2013

Meat & Livestock Australia
 

AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian territory by Meat & Livestock Australia (MLA).

Victoria

Quality more mixed and overall supply reduced

Victorian cattle supply covered by MLA’s NLRS decreased 14 per cent week-on-week, with most markets yarding fewer consignments, write market analysts at Meat and Livestock Australia.

The very cold and wet weekend and continuing rain throughout the week no doubt contributed too much of the reduction in numbers. Quality amongst centres varied more widely this week. Most were again mixed but one or two centres contained a lot more well finished young cattle and grown steers. Much of this was attributed to supplementary feeding especially of yearling cattle. Plain 1 and 2 scores made up much of the cow yardings across the state.

Prices generally improve

Buyer attendance was good and there was extra competition at some markets earlier in the week. Prices were dearer for nearly all categories of cattle. Manufacturing grown steers at one or two markets lifted up to 15¢/kg. Restocker and lot feeder activity varied as some centres had stronger competition, while others had limited inquiry. Competition for cows resulted in prices being mostly 5¢/kg higher, but some grades sold cheaper due to reduced buyer attendance at some markets.

Direct-to-works rates improve slightly

Processors also lifted their OTH rates slightly this week. Cows were up to 5¢/kg cwt better, while manufacturing and grown steers were a few cents higher. Some vealer and yearling grades lifted slightly, while others remained unchanged.

South Australia

Supply eases

Overall supply decreased by 8 per cent week-on-week, with yardings at MLA’s NLRS reported markets totalling 2,144 head. Mount Gambier yarded 32 per cent less cattle, while the SA Livestock Exchange increased by 42 per cent and Naracoorte lifted marginally, recording a 4 per cent increase. Yearling cattle and cows dominated yardings, with quality reportedly very good at the SA Livestock Exchange and Naracoorte sales, and somewhat improved at Mount Gambier compared to last week.

Buyers subdued at the SA Livestock Exchange

While all the usual buyers were present and operating at Naracoorte and Mount Gambier, there was one processor that did not operate at the SA Livestock Exchange and the others were reportedly subdued. Feeder buyers were selectively active on light weights, but as quality diminished, so too did buyer interest. While cows sold to solid processor competition, restockers were sporadic in their purchases and prices at the SA Livestock Exchange generally eased.

Prices vary

Heavy weight C3 vealer steers sold to an average price of 212¢, up 22¢, while medium weight C3 heifers averaged 207¢, lifting 9¢/kg week-on-week. Heavy C3 yearling steers were well supplied and gained 5¢ to average around 188¢/kg. Their heifer counterparts, however, lost 3¢ to make 177¢/kg. Heavy weight C3 grown steers were slightly dearer, up 4¢ to 189¢, while light D3 heifers gained 2¢ to make around 141¢/kg. Medium weight D2 cows sold to an easing trend of 10¢ with average prices settling on 128¢, while the heavy D3s were back 1¢ on 148¢/kg.

Queensland

Numbers decline

Overall cattle consignments declined 30 per cent across the Queensland markets reported by MLA’s NLRS, with a reduction in throughput recorded at Roma store, Roma prime and Dalby, back by 12 per cent , 56 per cent and 20 per cent respectively. The exclusion of Longreach due to fortnightly operation was also a factor behind the large reduction.

The majority of the cattle continue to be yearling steers and heifers, making up 38 per cent of consignments, with another large influx of calves from western regions present at Roma store. Export grown steers and heifer numbers declined, as did the number of mixed quality cows offered. Increased restocker and feeder interest at Roma store and Dalby saw prices improve slightly, while quality lines are still limited in supply.

Export consignments dearer

Export buyer attendance was reportedly not as good as the previous week at the Toowoomba Elders and Landmark sales, but overall prices generally trend dearer. Medium weight C3 grown steers were up 7¢, selling at an average price of 153.6¢, while heavy C4 steers gained 1¢ to make 162.8¢/kg. Plainer lines of cows were 3¢ to 7¢/kg dearer, while good heavy cows met a mixed trend, ranging from 4¢ cheaper to 3¢/kg dearer.

Young cattle prices vary

The number of calves brought forward was similar to last week, with the majority again going to restockers at improved prices, up 15¢ to 23¢/kg, with the better quality lines reaching a top of 204¢/kg. Vealer steers to restock were relatively unchanged, averaging 184¢, while medium weight heifers to process sold 8¢/kg dearer, settling on 163¢/kg. Light weight yearling steers to returning to the paddock improved 3¢ on average to make 178¢, while the plain quality medium weights to feed sold 3¢ cheaper, ranging from 120¢ to 158¢/kg. Demand from restockers for light weight heifers was subdued and averaged 16¢ cheaper on 130¢, while to process prices improved 6¢, ranging from 141¢ to 157¢/kg.

Western Australia

Big rainfall recorded in the south

Solid seasonal conditions remain in the top end of WA following on from the good rainfall in the north during June. Mustering activity remains high throughout the northern pastoral regions, with live export activity also remaining reasonable in the north. The southern districts of WA recorded a very wet week as several cold fronts brought heavy rainfall to the traditional cattle rearing areas of the southwest. Some falls exceeded 100mm, creating some localised flooding, but this heavy rainfall has now set up these areas for a good spring season. Pasture growth remains strong in these areas and has been aided by unseasonal warm weather, with no frosts recorded now for several weeks.

Supply firm

Processors continue to report strong supplies of cattle from the northern pastoral regions, also commenting on the good quality and weight being recorded. Physical saleyard numbers were only marginally higher this week, due to increased numbers of pastoral cattle at Muchea. The southwest sale was extremely small, with less than 100 head yarded, while the Great Southern also recorded another small yarding, which is not uncommon at this time of year.

Demand strengthens

Pastoral heavy weight steers and bullocks were of a good quality this week and recorded good processor inquiry, with little change realised in prices. The quality of both grass and grain assisted trade weight yearlings remained very mixed this week with local trade and retailer competition remaining firm, but very selective.

Local yearling store quality and weight continued to be very mixed. There was little change in feeder demand, while restockers were marginally more aggressive in lightweight store categories and this saw a slight increase in prices. Cow volumes were only moderate this week but, despite this, weight and quality in both local and pastoral drafts remained fair.

Trade demand strengthened in all cow categories as the week progressed, with most sales 3¢ to 4¢/kg dearer. Heavy weight bull sales were also moderately dearer to strengthened processor competition, while live export interest in lightweight classes remained selective.

New South Wales

Cattle numbers ease

Numbers slipped by 8 per cent at MLA’s NLRS reported markets week-on-week. Wagga commenced the week, penning 7 per cent fewer cattle, as Forbes yarded much the same, while Tamworth increased their consignments by 10 per cent . CTLX Carcoar slipped 7 per cent , as Dubbo lost 22 per cent in total. Armidale sold similar numbers, as did Gunnedah, while Inverell, Scone and Singleton lost from 14 per cent to 26 per cent , week-on-week.

Quality remained mixed

The majority of markets reported a mixed quality offering. Some sales reported greater numbers of prime young cattle suitable for the trade and butcher orders in their offering. Processor competition for the export categories was limited at the odd market during the week.

Yearlings again outnumbered the vealer categories, as the greater portion was suitable for restocker and lot feeder orders. Cow categories made up the bulk of the older cattle penned, with around 2,077 head offered, a decrease of 40 per cent , week-on-week. Prime conditioned heavy weight steers remained around equal in number, with around 863 head offered at MLA’s NLRS reported markets.

Variable trends this week

Medium weight vealer steers returning to the paddock lost 5¢/kg, as the same weight to processors maintained their firm prices. The heifer portion to processors sold close enough to firm, to average 161¢, after reaching 190¢/kg. Light weight yearling steers, together with the heavier pens to restocker and lot feeder orders, sold 2¢ to 3¢ either side of firm, as the medium weights averaged from 184¢ to 189¢/kg. Heavy weight yearling steers and heifers to the butchers ranged from 150¢ to 219¢/kg.

Heavy weight steers and bullocks to slaughter struggled to remain firm; however prime bullocks sold to spirited bidding. Cows sold to a marginally dearer trend, as the plainer 2 scores averaged 120¢/kg. The better covered 3 and 4 scores ranged from 100¢ to 162¢/kg. Heavy weight bulls averaged from 150¢ to 155¢, as well-muscled lots topped at 183¢/kg.
- See more at: http://www.thecattlesite.com/news/43436/mla-weekly-cattle-summary#sthash.qPFn4m1n.dpuf

[Mustang Sally Farm]

Australian Beef Export Values over A$5 billion16 August 2013 AUSTRALIA - During the 2012-13 financial year, Australian beef and veal export values were up by eight per cent year-on-year and 11 per cent on the five-year average, at A$5.07 billion, according to data from the Australian Bureau of Statistics. Analysts at Meat and Livestock Australia say that this is the second highest fiscal year value on record, with the highest set in 2008-09. Boosting market value, total export volumes in 2012-13 (1.01 million tonnes) increased substantially, up seven per cent year-on-year and eight per cent on the five-year average, and encouragingly, the average per tonne value improved marginally by one per cent from 2011-12 values, to A$5,002/tonne. Export values to Japan were seven per cent lower year-on-year, at A$1.47 billion, and 18 per cent below the five-year average, underpinned by lower export volumes over the period, at 298,840 tonnes. MLA said that interestingly, the 2012-13 per tonne value to Japan increased slightly by one per cent on 2011-12, to average A$4,917/tonne. US export values totalled A$973 million for 2012-13, up nine per cent year-on-year, assisted by the high 90CL prices and a slight rise of one per cent in the export volume for the year (206,570 tonnes). Underpinned by a higher overall export value and steady volumes, the average per tonne value to the US was A$4,709/tonne, up eight per cent year-on-year. The export value to Korea also improved during 2012-13, up eight per cent year-on-year and six per cent on the five-year average, to A$704 million. Export volumes of137,695 tonnes for 2012-13 rose by 12 per cent year-on-year, however, the per tonne value decreased 4 per cent over the period, to average A$5,113/tonne. With export volumes to China reaching 92,279 tonnes during 2012-13, more than ten-fold higher year-on-year, total market value increased 593 per cent, to A$411 million. The Middle East export value improved as well, up 45 per cent year-on-year, at A$251 million, underpinned by a 51 per cent increase in export volumes, to 47,912 tonnes.

[Mustang Sally Farm]

MLA: Weekly Cattle Summary
23 August 2013

Meat & Livestock Australia
 

AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian territory by Meat & Livestock Australia (MLA).

Queensland

Yardings remain steady

With close to 52 per cent of the state now drought declared, numbers increased at Dalby, while supply at most other markets covered by MLA’s NLRS remained similar to the previous week’s levels. The quality of the young cattle was very mixed and included larger numbers of heifer calves and light weight yearling heifers. The standard of the export classes of heavy grown steers and bullocks was generally fair to good. Restocker buyer representation in the young cattle section at some centres was not as good as the previous week, while export buyer attendance was generally good.

Demand variable

The supply of heifer calves exceeded demand, and prices suffered accordingly. However the better end of the calves to restockers made up to 190¢, averaging 172¢, while lesser quality lines were 9¢ cheaper with most around 130¢/kg.

Good quality vealer heifers to local and southern processors continued to meet strong demand to average 163¢, with some to local butchers reaching 193¢/kg. Light weight yearling steers were well supplied and most sold to restockers at 175¢, with the very occasional sale to 208¢ and D muscle lines around 145¢/kg.

Medium and heavy weight yearling steers to feed generally sold to firm demand, with only small adjustments in places due to quality. Medium weights averaged in the 170¢ range, with some to 192¢, while heavy weights averaged 164¢/kg. Well-presented light weight yearling heifers averaged just under 150¢, while a drop in quality saw prices in the 120¢/kg range.

Export classes dearer

Heavy grown steers and bullocks to export slaughter experienced stronger demand from processors, with average prices lifting by 3¢ to 5¢/kg and more on good quality lines. Heavy grown steers averaged 171¢ and sold to 183¢, while a good supply of bullocks averaged close to 174¢, with a few sales to 184¢/kg. The dearer trend for export categories flowed onto the cows, with medium weight 2 scores 2¢ dearer at 102¢ and some sales to 118¢/kg. A relatively small selection of good heavy cows lifted in price by 4¢ to average 131¢, with some to 146¢/kg.

Victoria

Overall yardings steady

Overall Victorian yardings were close to firm week-on-week to total 8,402 head at MLA’s NLRS reported markets. Ballarat increased its throughput by 20 per cent, Camperdown was up 29 per cent, Wodonga lifted 15 per cent and numbers at Colac improved by 38 per cent, albeit off a low base. Leongatha yarded 9 per cent fewer cattle, Pakenham was down 21 per cent, while Warrnambool eased 21 per cent and Bairnsdale reported a 5 per cent decrease. Shepparton’s numbers, on the other hand, were fully firm, again penning 1,400 head.

Secondary lines continue to flow

Quality ranged from plain to good across centres this week, and most markets were generally firm to slightly dearer. Young trade cattle were limited in number at Pakenham, however quality improved week-on-week, which saw prices lift. Demand also strengthened for heavy yearling trade cattle at Leongatha. At Shepparton, Friesian steers accounted for a large percentage of the offering, however not all exporters operated this week. This was also the case at Colac, where not all the usual trade, feedlot and export buyers were in attendance or making purchases.

Quality lines dearer

The C2 medium weight vealer steers to processors sold to an average price of 197.1¢, up 10¢, while the heavy weights settled on 195.7¢ to be 1¢/kg dearer. Medium to heavy weight C2 vealer heifers to slaughter also improved in price, lifting 5¢ to 8¢, to sell at an average price of 194.3¢/kg.

Heavy weight C3 yearling steers generally made around 199.8¢, lifting 2¢, with their heifer counterparts also 2¢ dearer and returned vendors an average price of 188.2¢/kg. In the grown cattle section, medium C3 steers lifted 3¢ to 195.2¢, while the heavy weight C4 class remained firm on 192.6¢/kg. The light weight D3 heifers experienced a 2¢ improvement to make around 160.6¢/kg.

Manufacturing steers, however, slipped 3¢ this week to settle on 159.8¢/kg. Cows generally met cheaper trends, with plainer heavy dairy cows back 4¢ on 132.7¢, and good D3 beef cows eased 5¢ to 151.3¢/kg.

New South Wales

Cattle numbers lift

As some supply areas throughout the state move into dryer conditions numbers lifted by 8 per cent at MLA’s NLRS reported markets. Wagga commenced the week, yarding 7 per cent less cattle, while Forbes lifted 7 per cent in total.

Tamworth increased 32 per cent, as Gunnedah gained 38 per cent, while CTLX Carcoar penned 17 per cent more. The northern Armidale and Casino markets both eased their supplies by around 20 per cent. The Hunter markets trended differently, as Scone gained 26 per cent, while Singleton lost 16 per cent in total. As the western regions remain dry, Dubbo continues to yard large numbers for a total of 4,210 head.

Quality remained mixed

Most markets reported greater percentages of supplementary and crop finished younger and grown cattle in their number. Processor competition for the export categories decreased, as some processors were able to fill their orders earlier. Yearlings again outnumbered the vealer categories, as large percentages were sold to the trade and restocker orders. Cow categories made up the bulk of the older cattle penned, with around 2,635 yarded, an increase of 6 per cent week-on-week. Prime conditioned heavy weight grown steers on average lifted in number, with around 969 penned.

Variable market trends

Medium weight vealer steers to restockers sold close enough to firm, averaging 175¢ after reaching a top price of 207¢/kg. The same weight heifer portion to processors sold around firm, averaging 163¢/kg; however any secondary drafts suitable for restockers met limited competition. Yearling steers sold better than the heifer portion, especially plainer heifers, as the prime conditioned heavy weight yearlings suitable for butchers also slipped between 2¢ to 5¢/kg.

Heavy weight grown steers and bullocks to slaughter sold 3¢ to 4¢ cheaper, with the best reaching a top of 198¢/kg. The plainer cows sold at equal prices, as the better finished pens sold 1¢ to 2¢/kg either side of firm. The plainer 2 scores averaged 119¢, while the better covered 3 and 4 score cows ranged from 108¢ to 162¢/kg. Heavy weight bulls averaged from 149¢ to 160¢, as the best reached 187¢/kg.

South Australia

Supply increased

Cattle supply in SA increased, with all centres offering more numbers. The general quality of yardings was average to good with more 3 score cattle supplied. Having said this, Naracoorte offered fewer numbers of very good quality supplementary fed yearlings, however there was some better quality heavy weight cows and bulls. There were increased supplies of C3 grown steers at Mount Gambier.

Buyer demand steady

There was steady competition from the usual field of processors for most categories of cattle this week. The exceptions were the dearer prices for grown steers and heifers at Mount Gambier and cheaper trends for most cattle in the smaller sale at the SA Livestock Exchange. Restockers provided only moderate competition on most yardings with producers remaining hesitant on purchasing secondary lines.

Prices show mixed trends

Light weight yearling steers to feed lowered 18¢ to average 162¢, while heavy weight categories were 2¢ lower on 186¢/kg. Medium weight yearling heifers were unchanged on 184¢, while heavy weights eased 1¢ to average 185¢/kg. Heavy weight grown steers to slaughter lifted 4¢ to 189¢/kg. Heavy weight C3 cows to slaughter were firm on 155¢, while D3 lines lowered 6¢ to average 144¢/kg.

Western Australia

Seasonal conditions remain good

Conditions in the southern agricultural districts of WA remain good, particularly in the south west and south east coastal areas, where winter rainfall and moderate temperature levels have promoted beneficial pasture growth. The past week has seen most areas receive little or no rainfall outside of south western and coastal areas in the south. Areas in the north continue to enjoy reasonable seasonal conditions, with mustering activity remaining steady. Live export activity remains reasonable out of northern ports, with some activity also seen in southern regions.

Southern numbers remain moderate

Pastoral supplies direct to processors in the south remain steady, while physical saleyard numbers in the three weekly sales continue to be limited. Muchea was the largest of the three sales, despite having approximately 250 head less than the previous week. The Great Southern yarding remained similar, with the southwest again the smallest.

There continued to be moderate volumes of pastoral cattle in Muchea. The supplies of local trade weight grass and grain finished yearlings remained moderate, while heavy weight steer and heifer supplies remained slightly higher than what has been seen in recent months. The number of local store yearlings was marginally lower, while cow volumes were moderate.

Demand holds steady

Demand from the local trade and retail sector was buoyant in grass finished trade weight yearling steers and heifers, with prices predominately 5¢ to 7¢/kg higher. Local store quality and weight continued to be very mixed, with demand remaining at similar levels.

Heavy weight local and pastoral steers and heifers enjoyed an increased trade demand that created dearer prices. This increased competition was also recorded throughout the cow weight and quality ranges, with all classes enjoying dearer prices. Heavy weight bull sales were also dearer under increased processor demand. Live export interest in light weight bull categories continued at similar levels.

 

[Mustang Sally Farm]

Weekly Cattle Summary: Feedlot Numbers Down Nearly 6 Per Cent02 September 2013 Ron Plain US - The number of cattle on feed in large feedlots at the start of August was down 5.9 per cent compared to August 2012. The pre-release trade forecast was for the on-feed number to be down 4.2 per cent, write Ron Plain and Scott Brown in their weekly report. This is the twelfth consecutive month that the number of cattle on feed has been below the year-ago level. The August on-feed number is the lowest for any August since 2010. USDA said July placements of cattle into large feed yards (over 1,000 head capacity) were 10.4 per cent lower than in July 2012. The 1.722 million head placed was the fewest for any July since 2008. USDA said marketings of fed cattle from large feed yards during July totaled 2.000 million head, up 4.5 per cent compared to July 2012 and the most for any July since 2008. July steer and heifer slaughter was up 4.5 per cent compared to a year ago. There was one extra marketing day in July compared to a year earlier. Crop growing conditions are deteriorating but are still far better than last year. As of August 25, 59 per cent of corn acres were rated in good or excellent condition. That is down 2 points from the week before, but up 37 percentage points from a year ago. On August 25, 31 per cent of pastures were rated poor or very poor. That is up 3 points from the week before, but down from 28 points poor or very poor a year ago. Fed cattle prices were mixed on light volume this week. Through Thursday, the 5-area average price for slaughter steers sold on a live weight basis was $123.69/cwt, up 25 cents from last week and up $4.16 from the same week last year. Steer prices on a dressed basis averaged $196.01/cwt this week, down $1.64 from a week ago, but up $7.25 from a year ago. This morning, the boxed beef cutout value for choice carcasses was $195.68/cwt, down 26 cents from the previous Friday, but up $5.82 from a year ago. The select carcass cutout is at $182.48/cwt, down $2.12 for the week, but up $2.89 from the same day last year. The choice-select spread, $13.21, was up $1.86 for the week. This week's cattle slaughter totaled 627,000 head, down 1.1 per cent from last week and down 2.2 per cent from a year ago. The average steer dressed weight for the week ending on August 17 was 864 pounds, down 3 pounds from the week before and down 1 pound from a year ago. Oklahoma City feeder cattle auction prices this week were $1 to $3 lower for steers and steady to $2 lower for heifers with prices for medium and large frame #1 steers: 400-450# $199-$226, 450-500# $183-$215, 500-550# $168-$196.50, 550-600# $167-$179, 600-650# $155.50-$168.50, 650-700# $152.50-$166, 700-750# $147-$159.50, 750-800# $145.50-$156, 800-900# $143.50-$154, and 900-1000# $139-$145.50/cwt. The August live cattle futures contract closed at $122.70/cwt today, down 40 cents from last week's close. October fed cattle settled at $126.80, December at $130.475/cwt.

[Mustang Sally Farm]

CME: December Cattle Traded Down on Thursday06 September 2013 US - December cattle traded slightly lower on the day into the pit opening and pushed sharply lower on the day into the mid-session and pushed down to the lowest level since August 12. October cattle is already down 3% from the August 16th highs as traders view the short-term, market-ready supply of cattle as adequate to surplus. This has helped to spark long liquidation selling in futures as speculators hold a hefty net long position in cattle and the futures are holding a premium to the cash market. Boxed-beef cut-out values at mid-session were down 42 cents to $196.14 from $196.28 last week. Yesterday's beef was at the highest level since early July. Average dressed steer weights for the week ending August 24th came in at 866 pounds, up from 864 the previous week and down 1 pound from last year. The 5-year average weekly weight for that week is 852.4. Beef production for the same week came in at 506.8 million pounds, down 1.84% from a year ago. Slaughter came in higher than trade expectations at 125,000 head which can sometimes indicate strong demand from the packer. - See more at: http://www.thecattlesite.com/news/43701/cme-december-cattle-traded-down-on-thursday#sthash.FqReQLW0.dpuf

[Mustang Sally Farm]

Cattle Futures: Live and Fed Cattle Close Higher on the Week, Friday
30 September 2013


US - Live cattle futures settled 55 cents higher at $128.25 while feeder cattle closed with losses.

Both markets closed higher on the week overall.

December cattle closed 50 higher on the session and this left the market gaining 232 points for the week and closing higher for the 8th session in a row.

The market traded slightly lower on the day into the pit opening with talk of the overbought condition of the market after closing higher for 7 sessions in a row helping to pressure.

However, buyers emerged to drive the market up to the highest level since February 20th. Traders expect to see tightening supply ahead and this has more than offset talk that short-term supply is adequate.

News that weights are coming down helped to support. Average dressed steer weights for the week ending September 14th came in at 867 pounds, down from 872 the previous week and down from 869 last year at this time.

Weights typically move higher at this time of the year but the reduced usage of Zilmax may be a factor.

Beef production for the same week came in at 487.9 million pounds, down 5.6 per cent over year ago.

Boxed-beef cut-out values at mid-session today came in at $192.85, down 75 cents from the previous session but still up slightly from last week.

[Mustang Sally Farm]

CME: Cattle Closed Lower on Thursday04 October 2013 US - December cattle closed 5 lower on the session after traded 50 lower near the pit opening. The break in the stock market and talk that an extended government shut-down could cause consumer sentiment to decline helped to pressure. Packer margins were weak coming into this week and the lack of packer bids with futures trading well above the cash has sparked some long liquidation selling. Strength in hogs helped to provide support and helped pull the market from lower to slightly higher on the day into the mid-session. Talk that cut-out values were higher at mid-session helped to support the market late. Bids in the panhandle improved to $126.00 today and there was talk that some cattle traded at this price and that a few cattle traded at $126.00 in Kansas. Asking prices are $128.00-$129.00.

[Mustang Sally Farm]

CME: Government Shutdown Leaves Question Mark Over Cattle Slaughter15 October 2013 . US - We start another week with no USDA price and slaughter reporting. This means we could not update the regular weekly summary table that accompanies every Monday report, write Steve Meter and Len Steiner.While there continue to be attempts on the part of market participants to replace some of the information provided by the regular USDA report, the information so far, in our view, is vastly insufficient given the size of the market and the value of product traded. On the supply side, it is difficult to get a good idea as to the number of cattle and hogs that are coming to market each day. So far, the only thing to go on are estimates from private analysts but that is no substitute for the actual FSIS inspector reports reviewed and reported by USDA. Urner Barry provided some estimates on both cattle and hog slaughter based on their discussions with two private analysts. Their guess is that cattle slaughter for the week was around 623,000 head, about 0.8 per cent lower than the previous week and 1.6 per cent lower than a year ago. With no USDA data for confirmation, these numbers provide a rather broad guidance. There is no indication as to how many cows are coming to market. Judging from the lean 90CL grinding beef prices reported, however, cow meat supplies are more than adequate at this point. We have been asking analysts around the industry whether they think USDA will issue a Cattle on Feed report this month. All analysts we have contacted have indicated they expect no report will be published, removing a key piece of information with regard to cattle supplies in Q1 of 2014. We have no idea how USDA will handle the missing data, but it appears likely to us that we could have a missing data point in the series. We should get an update from USDA soon confirming the status of the upcoming cattle on feed and cold storage reports.

[Mustang Sally Farm]

MLA: Weekly Cattle Summary21 October 2013 AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian territory by Meat & Livestock Australia (MLA). South Australia Numbers lift Overall numbers increased 56 per cent to total 4,804 head at MLA’s NLRS reported markets. With the return to a normal trading week, Mount Gambier yarded 60 per cent higher numbers, while Naracoorte lifted its throughput 51 per cent . After missing a sale due to last Monday’s public holiday, the SA Livestock Exchange was once again operating and yarded 629 head. Tentative demand The buying gallery at the SA Livestock Exchange was reportedly in limited attendance this week, with competition easing on a mixed quality offering, write market analysts at Meat and Livestock Australia. Naracoorte, however, offered a fair to good quality yarding for a much larger young cattle and cow penning. Quality related improvements in the young cattle selection saw prices trend firm to slightly dearer. Mount Gambier experienced easing competition from trade and processor buyers; however feeders and restockers were active on suitable cattle. Prices decrease Heavy weight C3 vealer steers to the trade were 6¢ cheaper to average 193¢, while their heifer counterparts were back 3¢ on 187.6¢/kg. Medium and heavy weight C3 yearling steers to processors lost 11¢ to 19¢, respectively, with average prices around 166.3¢ and 179.2¢/kg. The medium weight C2 and C3 heifers gained 2¢ to 9¢ to settle on 166.6¢, while heavy C3 lines eased 12¢ to 166.9¢/kg. Heavy weight C3 grown steers and bullocks slipped 4¢ to 10¢, week-on-week, selling to an average price of 182¢/kg. Medium D2 beef cows were back 9¢ on 111.5¢, while heavy C and D3 lines lost 3¢ to 4¢ to settle on 139¢/kg. Queensland Numbers lift Numbers at physical markets reported on by MLA’s NLRS increased by 7 per cent week-on-week. The return of the Toowoomba sales, following their absence the previous week due to the public holiday, lifted overall supply. There was a large increase in numbers at early markets due to the break in the selling program, while numbers generally remained steady at most other centres. Buyer attendance across the young cattle section was generally good with all the usual feeder buyers present and operating, along with reasonable numbers of restocker buyers, despite the lack of rain. Export processor activities were erratic and, while all were present, not all were operating across all classes. Prices continue to fall The better end of the young cattle met strong demand from restockers, feeder operators and the trade, while secondary quality lines struggled to maintain recent levels. A handful of top quality vealer heifers to local butchers made to 201.2¢ and D muscle lines were in the largest numbers and averaged 122¢/kg. Light weight yearling steers returning to the paddock continued to receive strong support with most close to 168¢, with sales to 182.2¢/kg. The largest number of medium weights to feed averaged 165¢ and made to 180¢/kg. A large sample of heavy weights to feed lifted in price by 1¢ to 5¢, with most in the high 160¢ range and some sales to 176.2¢/kg. The dry weather conditions continue to force large numbers of light weight yearling heifers into the market. Prices generally improved with a small selection of top quality lines averaging 174¢, and D muscle lines averaged in the mid-140¢/kg range. Heavy grown steers and bullocks generally sold to a dearer trend with a premium for the younger milk and two tooth classes, while average prices eased for the secondary quality lines. Heavy grown steers averaged 184¢, with occasional sales to 195.2¢/kg. The better end of the bullocks made to 197.2¢, to average 187¢/kg. The cow market saw only quality related price changes, with medium weight 2 scores at 102¢ and 3 scores close to 120¢/kg. Good heavy cows averaged 142¢, with sales to 149.2¢/kg. Western Australia Season remains strong The traditional cattle growing areas of the southwest remain in a very strong seasonal situation, with pasture and feed levels very high. Weather conditions have remained mild, with some light rainfall recorded mid-week and forecasts predicting more rainfall across the weekend. Hay production is in full swing in the southwest and, despite recent rainfall, there has been only limited interruption to this process. Conditions in the far north of the state remained fine and dry, with temperatures increasing and reducing mustering activity – as would be expected at this time of year. Spring turnoff on the rise Processors continue to report solid booking levels on a direct-to-works basis, with the turnoff of southern agricultural cattle on the rise. Live export activity has also increased in southern regions. There was an increase in physical sale numbers this week, with all three weekly sales having higher numbers penned. Pastoral cattle supplies were moderately larger, while the numbers of local trade and heavy weight steers and heifers were higher. The volumes of yearling store cattle remained moderate, with slightly higher supplies of new season vealers. Cow numbers increased, with an overall lift in quality seen at all three markets. Firm demand Demand from the trade and feeder sectors for prime, grass finished, trade weight yearlings remained similar, with only slight decreases recorded in overall prices. Heavy weight steers and bullocks eased also marginally for both local and pastoral drafts. Demand from the feeder and restocker sectors for yearling stores remained selective but strong throughout the classes, with reasonable increases in prices. The cow market remained at strong levels, with a solid and constant processor demand and competition recorded in both local and pastoral categories. Live exporters remained active on light weight bulls, with these realising moderate increases in price levels. Victoria Cattle supply steady Cattle numbers showed little change as the generally favourable spring conditions continue to bring forward good numbers of stock with plenty of weight and condition. At MLA’s NLRS reported sales, supply eased slightly to 11,689 head overall, although a couple of individual centres recorded increased offerings. The smaller selling centres of Bairnsdale, Ballarat, Camperdown and Colac all had reasonable increases, as did Leongatha which yarded a healthy 1,505 head. Countering the rises was Wodonga, where numbers fell by 850 to 3,350 head. Plenty of weight and finish Quality and condition varied depending on local conditions, but overall consignments provided a very good selection of processing stock for both domestic and export orders. A number of centres reported small but well presented offerings of supplementary fed young cattle, along with good numbers of grass fed lots showing the benefit of the spring conditions. At Wodonga, there was an excellent offering of prime young cattle, mostly grass fed. This prompted a market rise of 4¢ to 5¢ – and up to 20¢ in places – for young cattle, with B muscle vealers reaching a top price of 230¢/kg. Light trade cattle were generally in fewer numbers, with most centres recording better numbers of grown steers and cows. At Leongatha, young trade cattle were scarce, with yearling steers falling mostly into the heavy weight categories and many of the yearling heifers going to restockers. At Warrnambool, much of the rise in numbers was due to more cows and grown cattle offered, while among the young cattle there were only a few vealers. Slaughter cattle sell stronger Demand remained generally strong for good quality slaughter cattle, with average prices mostly firm to around 5¢/kg dearer across all sales. The better vealers ranged from 180¢ to 220¢, while medium and heavy C3 yearling trade steers reached 216¢ to average around 189¢/kg. Secondary D muscled young cattle and those selling to restockers, however, generally eased by as much as 20¢/kg, particularly for heifers. While grown steers to process also averaged a little dearer, selling above 200¢/kg at a number or centres, grown heifers and cows generally tended cheaper. New South Wales Yardings surge Overall cattle yardings, as reported by MLA’s NLRS, recorded a 73 per cent increase in numbers week-on-week to total 28,885 head. This was due to the return of the Forbes, Tamworth and Wagga sales following last week’s public holiday, combined with record numbers being recorded at some centres. CLTX offered 18 per cent more cattle this week, while Gunnedah and Scone increased throughput by 19 per cent and 31 per cent , respectively. Casino lifted its yarding by 4 per cent week-on-week. Tamworth saw its consignments hit their highest level since 1998, totalling 2,795 head, while Dubbo’s 35 per cent week-on-week increase resulted in a record yarding of 7,740 head. The only centres to defy the trend were Armidale, Inverell and Singleton, with all experiencing a 13 per cent to 19 per cent decrease in throughput. Dry weather continues to hamper quality As the dry weather in the north of state continues, most cattle yarded at northern markets were of plain quality; however restocker activity at Armidale helped boost the market. There were limited numbers of well-finished grown steers and trade cattle consigned at Tamworth. The very best of the trade cattle sold close to firm at Dubbo, however as most were in plainer condition, prices eased on the majority. The quality of grown steers and bullocks was excellent at Wagga, however demand was weak. Cows and grown steers at CTLX showed plenty of weight and condition. A large percentage of the yarding at Scone was either off crop or supplementary finished, while there was a lack of supplementary finished trade cattle offered at Singleton. Prices fall under weight of numbers Medium weight vealer steers to restock were 12¢ lower on 152¢, while medium weight vealer heifers to slaughter were 5¢ higher on 161¢/kg. Light weight yearling steers to restockers were 7¢ cheaper on 152¢, while those to feed lost 10¢ to average 160¢/kg. Medium weight yearling steers to feed decreased 9¢ to 164¢, while heavy weight drafts to slaughter eased 4¢ to 180¢/kg. Light weight yearling heifers to restockers were firm on 131¢, while medium weight lines to slaughter were 9¢ lower on 156¢/kg. Heavy weight 3 yearling heifers were 2¢ cheaper on 160¢/kg. Medium weight grown steers to feed decreased 16¢ to average 159¢, while those to slaughter were 9¢ lower on 166¢/kg. Heavy weight grown steers to slaughter slipped 7¢ to 171¢, while bullocks to kill gained 7¢ to average 185¢/kg. Medium weight grown heifers to slaughter were 3¢ higher on 157¢, while D3 lines to process eased 9¢, to settle on 132¢/kg. Medium weight cows to slaughter were 6¢ cheaper on 126¢, while heavy weights also lost 3¢ to 139¢/kg.

[Mustang Sally Farm]

MLA: Weekly Cattle Summary01 November 2013 AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian territory by Meat & Livestock Australia (MLA). South Australia Consignments reduce across the state Total cattle throughput across SA, as reported by MLA’s National Livestock Reporting Service, reduced 38% week-on-week, with all selling centres yarding fewer numbers, while Millicent’s fortnightly sale was not in operation this week. Consignments at Mount Gambier were 30% less compared with last week, with good numbers of vealers and fewer grown steers yarded. Naracoorte saw 32% fewer cattle consigned than last week, with restockers securing a moderate supply of the young cattle offered, while numbers at SA Livestock Exchange were 7% lower in comparison to week-ago levels. Subdued demand and generally plainer condition At markets across the state there was generally subdued bidding from the regular gallery of buyers. Overall quality at Mount Gambier was mixed, with feeder and restocker demand reportedly lower, while the reduced numbers of grown steers were in much plainer condition compared to previous yardings. The SA Livestock Exchange also saw feeder buyers active at lower prices, with restockers selective on purchases. Quality at Naracoorte mainly improved week-on-week, with buyers displaying preference for the best quality and lighter weight lines. The young cattle section saw mostly medium to heavy weight lines in good condition, while the few grown cattle sold to slightly dearer price trends. Prices vary across most categories Medium weight C3 vealer steers to slaughter reduced 3¢ week-on-week, to settle on 174¢, while heavy weight C3 vealer heifers to processors sold 3¢ dearer and averaged 171¢/kg. Heavy weight C3 yearling steers to slaughter were 4¢ cheaper on 165¢, while the equivalent heifer portion averaged 7¢ lower on 156¢/kg. The C3 bullocks sold 1¢ higher to processor orders, to average 169¢, while medium weight C3 grown heifers were back 4¢ on 151¢/kg. Heavy weight D3 beef cow grades were 2¢ dearer on 131¢, while heavy weight B2 bulls to processor orders eased 1¢ on last week, to average 132¢/kg. Victoria Numbers ease across most centres Victorian cattle numbers across MLA’s NLRS reported markets declined 26% overall to total 8,223 head. Throughput at Bairnsdale slipped 43%, while Ballarat was back 11% week-on-week. Camperdown recorded 24% fewer consignments, while Pakenham and Wodonga eased 41% and 31%, respectively. Numbers at Leongatha were 37% lower than the corresponding week and Shepparton experienced a 22% reduction. The only markets to defy the trend and report higher yardings this week were Colac and Warrnambool. Greater percentages of secondary lines yarded The market at the Pakenham young cattle sale was dominated by secondary slaughter grades and store cattle, with overall quality plainer week-on-week. At Shepparton there was a larger percentage of plainer 1 and 2 scores yarded in the export section and fewer supplementary fed cattle offered, causing overall quality to slip. Ballarat reported extra processor competition, and although quality was average, there were a few better quality pens of steers and cows available. There was extra northern competition at both Wodonga sales, with Colac also reporting extra buyers in attendance. A larger proportion of the young cattle were purchased by restockers at Camperdown this week, although the usual buying group was not operating fully. Similarly, at the Pakenham grown cattle sale restockers increased their activity, but were met with extra competition from processors over suitable young lines. Cow prices lift Heavy weight B2 vealer steers to processors experienced a 2¢ lift in price to settle on an average of 199¢, while their heifer counterparts were up 1¢ to average 185¢/kg. Heavy C2 yearling steers to feeder buyers eased marginally to 165¢, while C3 lines to the trade were back 5¢ to average 175¢/kg. Medium and heavy weight C3 heifers to processors gained from 1¢ to 3¢, week-on-week, selling around 149¢/kg on average. Heavy weight C3 grown steers met weaker price trends, back 4¢ on 171¢, while C4 bullocks slipped 6¢ to average 170¢/kg. Light D3 grown heifers, on the other hand, lifted 12¢ to 148¢/kg. Medium D2 and D3 score beef cows were 7¢ to 10¢ stronger on 123¢, while heavy D3 and D4 lines lifted 4¢ to 5¢ to average around 132¢/kg. The plainer D1 and D2 score heavy weight dairy cows were up 1¢ to 2¢ on 120¢/kg. Queensland Numbers lift after scattered showers Overall supply at physical markets covered by MLA’s NLRS increased by close to 12%, week on week. Recent rain forecasts saw numbers at markets in the very south-east corner of the state decline, while supply at Dalby and the Roma store sale increased. Most markets reported a fall in quality, with increased numbers of poor condition lines from north-west Queensland included in the line-up at Roma. Dalby also experienced an influx of plain quality lines originating from drought affected western districts. Buyer attendance was erratic, with only limited numbers of restocker buyers present at the Roma store sale, while some overnight rain increased restocker competition at Dalby. All the regular processors were in attendance, however not all were operating at some markets. Price reflects quality for young cattle Young cattle experienced variable trends, with quality variations generally attributing to price movements. Most of the calves were D muscle lines and sold to restockers at an average of 128¢/kg. Light weight yearling steers returning to the paddock averaged 2¢ better at 169¢, while D muscle lines were in the largest numbers and remained firm at 145¢/kg. Medium weights to feed improved 6¢ to 7¢, with most sales in the high 160¢/kg range. Prices for heavy weights to feed improved 11¢ and, as the week progressed, larger increases were experienced. The large supply of light weight yearling heifers was dominated by D muscle lines and most returned to the paddock at an average of 131¢/kg. A small selection of medium weights to the trade improved 4¢ to average 162¢, with some to 185.2¢/kg. Export cattle numbers retreat The limited supply of heavy grown steers and bullocks were penned and prices generally remained firm. Heavy 3 score grown steers averaged 174¢ and a handful of better condition lines averaged 183¢/kg. The small selection of bullocks averaged 182¢, with sales to 185.2¢/kg. The reduction in the supply of cows was dominated by light and medium weights. Prices varied in places, with lean cows 3¢ to 9¢/kg cheaper. Light weight D2s averaged 81¢ and medium weights 98¢/kg. Medium weight 3 scores averaged 119¢ and heavy weights 122¢/kg. Good heavy cows made to 146.2¢ to remain close to firm, averaging 137¢/kg. Western Australia Hotter temperatures Temperatures have risen across WA, with temperatures spiking sharply in the southern agricultural districts. The traditional cattle rearing areas of the southwest remain green, while eastern and northern areas have now hayed off with harvest activity on the rise. Hay production has now been completed in the majority of areas. Feed supplies remain high throughout the districts, with crop yields also expected to be above average. Agents have reported that they are still waiting on grain finished contracts from the major processors, and subsequently the start of the two day sale format at Mt Barker will not begin until the first week of December. Spring turnoff gains momentum Supplies of local cattle continue to increase at physical markets, with the spring turnoff now in full swing and cattle levels direct-to-works also solid. Conditions in the far north remain very hot, while mustering activity remains moderate in the Murchison and Gascoyne regions. Muchea and Boyanup had increased their supplies. Muchea again had solid supplies of mixed quality pastoral cattle, while there were fewer consignments of prime trade and heavy weight local steers and heifers at all three weekly markets. Store yearling numbers remained moderate with similar cow volumes available. Grown cattle sell cheaper Trade weight yearling demand remained fair throughout the week, with most sales of both steers and heifers unchanged comparative to the previous week. Heavy weight steers and bullocks eased marginally despite the lower supplies, with this also the case in heavy weight mature heifer sales. The cow market started the week at lower levels, but this improved as the week progressed, with overall average prices for prime heavy weight grades similar to last week. Heavy weight bulls, particularly those in excess of 1000kg lwt, continued to record limited processor inquiry. New South Wales Cattle numbers slip Cattle numbers on average slipped back 8%, however the continuing dry seasonal conditions lifted consignments at Dubbo and Singleton, week-on-week. CTLX Carcoar and Wagga declined 24%, as Tamworth and Gunnedah lost from 14% to 20% in total. The northern markets also lost numbers, as Casino dropped 27% compared to the previous week. Dubbo continues to yard large numbers, with 6,250 cattle penned. Quality remains mixed Markets again reported mainly mixed quality offerings, however all yarded good percentages of prime conditioned younger drafts suitable for the butchers. As expected, Dubbo again attracted numbers of plainer western cattle. Vealer steers were limited in supply and were outnumbered by the heifer portion. Yearlings were again well represented, with 5,712 steers offered, compared to 4,825 yearling heifers. Numbers of the grown steers and bullocks suitable for slaughter remained consistent, as over 1,500 were yarded. Cows continue to be presented in strong numbers, with another 5,000 penned. Prices stabilise Prime conditioned young cattle across all categories sold firm to dearer trends. The higher quality and popular breeds of the younger steers and heifers, purchased by restockers and lot feeders also sold dearer, however any plainer pens lost considerable competition. Grown steers to slaughter experienced weaker competition with ample numbers penned at southern and South Australian markets. Heavy weights lost 4c to top at 186c, before averaging from 167c to 175c/kg, depending on finish. The general run of heifers sold close enough to firm to reach 161c, before averaging 143c/kg. Cows again struggled, as southern processors failed to compete at some markets. Prices slipped 3c to 6c, as the plainer 2 scores averaged 102c, while the better finished 3 and 4 scores ranged from 104c to 152c

[Mustang Sally Farm]

Indonesia Permit Confusion and Drought Blights Ozzie Beef Giant
08 November 2013


AUSTRALIA – Live export uncertainty and continued drought conditions have been blamed by the Australian Agricultural Company for a half year net loss of A$31.6 million.

Persistent heat and below average rainfall across Queensland and the Northern Territory has hit Australia’s largest beef producer which reported lower cattle sales and a 67 per cent fall in gross margin.

In its half year financial review, the AACo said statistics were pressured by average live weight prices falling 12 per cent, contributing to a $20.4 million drop in cattle sales revenue.

The review also blamed depressed cattle prices on communication over the live cattle trade permits to Indonesia hampering sales.

Indonesian exports have concerned cattlemen since suspension of live cattle exports under the previous Federal Government in June 2011 which, combined with drought pressure, led to industry-wide destocking, explained an AACo spokesperson.

“The dry conditions have brought about destocking across the cattle industry forcing prices lower than prior years. Prices achieved to 30 September 2013 averaged $731 per head.”

The spokesperson added: “Cattle purchases have also been reduced to 14,453 head for the six months to 30 September 2013 with the bulk of the cattle purchased to support feedlot operations.”

However, weather aside, the AACo stressed Indonesian exports looked more upbeat and suggested requirements of feeder cattle could lift, also highlighting new markets in Vietnam as a driver of higher prices.

Acting Chief Executive Officer Craig White said: “Recent diplomatic moves by the new Federal Government are also promising for an improvement in live export trading conditions with Indonesia.”

Elsewhere, Mr White, reported gross margin improvement in the Branded beef divisions, up 323 per cent in value over the six month period.

“The success of the Branded Beef business continues to validate AACo’s strategy of moving from a pure pastoral company to a vertically integrated producer, processor and marketer,” said Mr White.

“Our Branded Beef division was driven by a decision to concentrate on higher-value customers and improved yields, initiated by a reinvigorated management team.”

Further positive news came from a cash flow improvement and reports of a new processing plant, expected to be ready next year.

“The company’s Darwin Beef Processing Facility will be crucial to both enhancing the group’s profit as well as reducing the volatility of the group’s earnings profile,” added Mr White.

He concluded: “While external factors such as the drought and the corresponding low cattle prices have affected the result for this half, the company has been able to effectively manage the things it can control.

“This is demonstrated by a $4.5 million improvement in operating cashflow for the half compared to the prior corresponding period, despite a volatile environment with significantly increased feed and transport costs.”

 



Michael Priestley, Editor