Prices ease with larger numbers

AUSTRALIA - The reduced competition from lotfeeders and restockers was the main factor behind lower young cattle prices. Higher numbers and weaker demand resulted in cheaper export cattle rates. The national Japan ox and US cow indicators fell 15¢ and 7¢, to 172¢ and 117¢/kg lwt, respectively.
calendar icon 17 November 2006
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Weaker saleyard demand

Throughput at MLA’s NLRS reported saleyards jumped 15% from last week, due to a combination of lower than anticipated rainfall in recent weeks and vendors trying to offload while stock are in finished condition and before some abattoirs wrap up buying for annual maintenance closures.

The increased supply was mainly in central Queensland and the border regions of NSW and Victoria as well as south-east SA. Longreach had larger numbers, as the selling season is drawing to a close in that area. Casino and Scone experienced a substantial rise, while Wagga, Wodonga and Shepparton once again had very large yardings, similar to the beginning of October, with producers offloading plentiful numbers of yearlings in finished condition.

Demand from processors eased with the onset of a burst in numbers, combined with some northern operators finalising consignments required before maintenance closures. Restocker demand also weakened after the recent encouraging signs of the previous fortnight. Lotfeeder demand remained stable, although, with enough suitable stock available, buyers have been able to aim for lower bidding rates in the physical market.

There has been some panic-selling from vendors in central Queensland as processors begin to wind down sourcing for the year and the decision to hold on for up to 6 weeks or to sell now is imminent. There have been some good quality offerings in the north-west of NSW, where younger cattle typically reach desired weights and condition for sale now rather than earlier in spring (when large numbers were sold off early due to seasonal conditions).

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