26 March 2012

2 minute read

Oceania

According to Meat and Livestock Australia, despite the lower supplies of young cattle, 18 per cent more vealer steers have been sold to restocker and backgrounder orders. Restockers and backgrounders have particularly focussed their attention on lightweight vealer steers under 280kg lwt – with demand stronger largely due to the improved seasonal conditions. A higher proportion of heavy vealer steer consignments over 280kg lwt have also been secured by restocker competition, increasing 22 per cent year-on-year.

The number of yearling steers returning to the paddock lifted 11 per cent on last year, with the biggest increases observed in West Australia, Queensland and Victoria. West Australia producers have been eager to secure replacement stock after the season turned around, with restocker purchases increasing two-fold. Light yearling cattle under 330kg lwt have mainly been secured by restockers, while 11 per cent more heavy steers over 400kg lwt returned to the paddock – such is the desire of producers to obtain store cattle.

Prices for vealer steers selling to restockers have been strong so far in 2012, although price averages have eased in comparison with last year. This has been despite the ongoing demand for store cattle, but restocking and backgrounding orders appear to be using more caution. Restocker vealer steer prices averaged three per cent lower on 232¢, while yearling steer returning to the paddock were unchanged on 214¢/kg lwt.

Restocker activity has picked up throughout March, after the soaking summer rains in the eastern states. Producers with paddocks full of fodder have increased their presence in the markets, as prices for store steers and heifers lifted in both the physical and store markets. The prospect of mild autumn temperatures and the solid outlook for cattle prices has continued to underpin the young cattle market.

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