Cattle update – June 2022
At a glance
- Cattle prices find support amid a low point for supply.
- Signs in the northern cattle market point towards higher supply come July and the potential for cheaper feed grain.
National trade steer prices trended higher in June on the back of a traditional low point for supply, increasing by 4 per cent (pc), however the rise in prices is expected to be short lived with a hint of increasing numbers in July.
Ahead of the new financial year, ABARES June quarter forecast suggests an increase in beef cattle numbers of 6.4pc in 2022/23, taking the national total to 24.2 million head. The increase is expected to translate to a 5.4 pc increase in slaughter volumes.
The extra supply will take the shine off record high prices, national trade steer prices are forecast to average 852 c/kg cwt, a 14.9 pc decline compared to 2021/22. However, an average of 852 c/kg cwt is still comparatively high when compared to long term averages.
The Elders Weather outlook forecasts multiple cold fronts across southern and eastern Australia from 7 to 11 and 19 to 23 July. Rain events from the tropics have the potential to move south and generate rain from the 27 June to 1 July. The cold fronts are expected to bring widespread rain. In Western Australia (WA), the strongest cold fronts will start from 7 to 11 and 12 to 16 July.
From the field
“Cattle prices have come off recent highs with signs of increasing volumes ahead of July.
“Cold weather and frost in parts of the state has slowed pasture growth but overall feed availability is at a good level for this time of year.
“High input costs are having an impact on feeder markets with a sustained squeeze on margins. However, there have been some signs recently to suggest there’s a need to move feed grain which could result in price reductions.” – Paul Holm, Elders Livestock Manager, Queensland
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Sources: Price data reproduced courtesy of Meat & Livestock Australia Limited.
The information contained in this article is given for the purpose of providing general information only, and while Elders has exercised reasonable care, skill and diligence in its preparation, many factors (including environmental and seasonal) can impact its accuracy and currency. Accordingly, the information should not be relied upon under any circumstances and Elders assumes no liability for any loss consequently suffered. If you would like to speak to someone for tailored advice relating to any of the matters referred to in this article, please contact Elders.
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