Cattle market

The cattle market was generally positive this week despite a 14¢ decline in heavy steer prices. Yardings eased once again, totalling 48,488 head.

The National Young Cattle Indicator lifted 14¢ to 357¢/kg liveweight (lwt). This is the second-highest price this year, behind the peak in February. A large portion of supply was coming through NSW online sales, which made up 23% of the indicator throughput. NSW online sales took over Roma and Queensland online sales, reflecting a slowdown in Queensland supply (though recent rain across the state lifted restocker enthusiasm).

The Heavy Steer Indicator fell back 14¢ to 345¢/kg lwt, opening the gap between processor-ready steers, trade feeders and restockers. The restocker market was driven by Queensland regarding throughput. Rain across NSW led to stronger restocker steer prices, particularly in Wagga Wagga. The Restocker Steer Indicator lifted 8¢ to 375¢, while the Heifer Indicator was the week’s highest performer, lifting 12¢ to 298¢/kg lwt.

Sheep market

The sheep market was poorer this week, as yardings eased 15% to 246,111 head, with an 11% dip in sheep (78,071) and a 16% dip in lamb yardings (168,040).

The Mutton Indicator eased 11¢ to 362¢/kg carcase weight (cwt), however was the least impacted by the decline in yardings. The declines were largely due to mixed quality of mutton offered to larger buyer markers, especially across NSW, softening $7–$21 in a usually strong Wagga market, and $10–$20 in Bendigo.

The Heavy Lamb Indicator was the best performer – while also being less affected by hits to yardings. The indicator lifted 7¢ to 819¢/kg cwt. Exporters were present across major markets and quality was the driver across NSW – lambs above 30kg drove the excitement, with good lines of grain-assisted stock hitting markets, some tipping $300/head.

Slaughter

Week ending 16 August 2024

Cattle slaughter eased slightly on the previous week, easing by 4,000 head (3%) to 134,023 processed over the week, remaining above the weekly average for 2024.

The most significant change across states was in WA, with slaughter lifting 33% to 3,539 head, their highest since March of this year. Slaughter also lifted 6% in Tasmania to 4,448 and 3% in NSW to 34,993 head. Eases were seen in all other states, starting at Victoria by 1% to 21,959 after the historic highs of previous weeks. SA slaughter dropped by 2% to 3,280, and Queensland (which drove the national dip) falling by 8% to 65,864, their lowest throughput since May.

Lamb slaughter eased 4% to 413,152 processed over the week. Despite lifts in NSW (1% to total 117,392) and Queensland (4% lift totalling 1,477), all other states experienced declines. Sheep slaughter lifted 6% to 154,689 head processed over the week. This was buoyed by a 16% lift in NSW to 63,578. Despite the lift, it is still below the weekly average for 2024.

Combined slaughter remained flat, falling by only 1% to 567,841. Tasmania and SA each fell 10% and 20% respectively to 8,283 and 22,044 mainly due to maintenance closures, while Victoria eased 4% to 269,824. Lifts between 1%–6% were seen across other states; WA (85,228), Queensland (1,492), and NSW (180,970).

MLA

See also:

Australian Red Meat Exports Boom in UK since Free Trade Agreement

Quotes

Base quotes for spring lambs from the major processors have improved slightly this week with €7.00-7.05/kg (+QA bonus) on offer. Relatively tight lamb supplies combined with some stability in demand from the domestic and export markets have contributed to this firming of the trade.

Tighter lamb supplies are also a feature in other key lamb producing regions of Europe and the UK with the latest Eurostat figures indicating a contraction in breeding flock numbers in many regions. The Irish ewe flock contracted by 3.7 per cent in the December 2023 census versus December 2022 levels. This decline in the ewe flock of 107,000 head is one factor contributing to the tightness in supplies currently.

Prices

Last weeks reported deadweight price firmed to €7.18/kg, an increase of 8c/kg from the week previous and reflective of the improvement recorded in quoted prices from the major lamb processors. In the corresponding week in 2023 the reported deadweight price was €6.14/kg.

The deadweight trade has also improved across the UK regions. Reported spring lamb prices in mainland GB were the equivalent of €7.77/kg  last week (+10c/kg) while in Northern Ireland there was a notable improvement in the trade to €7.28/kg (+20c/kg).

Relatively tight supplies of lamb for slaughter in Northern Ireland combined with competition from the live export trade to both mainland GB and ROI contributed to this firming in the trade.

Southern Hemisphere prices remain well below European prices however they have improved significantly over the last few weeks, narrowing the price differential with the EU. With a lead time on product shipments this recent improvement in deadweight prices should impact their competitiveness on EU markets in the medium to  longer term.

Demand for Southern Hemisphere lamb in China has remained somewhat subdued in recent months however reports of stable demand in the Middle East and the US has helped redivert product away from key European markets.

Throughput

There was a marginal decrease in the total sheep kill in DAFM approved plants last week to 47,568 head. Tighter supplies has been a feature of the 2024 lamb season to date with a smaller lamb crop, a difficult lambing and changeable grass growing conditions all impacting lamb availability for processing.

The spring lamb kill for 2024 YTD totals 472,000 head, a decline of almost 90,000 head or 16 per cent from the same period last year. The supplies of spring lambs are expected to increase in the weeks ahead as more mid-season lambing flocks start to present lambs for processing.

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Irish Cattle Trade & Prices w/e August 17th 2024

Throughput

There were 30,699 cattle processed in DAFM approved plants during the week ending 10 August 2024, taking throughput for the year to date to 1,069,125 head. This is a +6,100 head or 0.5% increase on the corresponding period in 2023 when a total of 1,063,024 cattle were processed. There have been 762,805 prime cattle processed in the first 32 weeks of 2024, a 1% decrease from the same period last year (-8,978 head). Cow throughput has remained strong with 266,885 cows processed so far this year, a notable increase of 25,200 head (+10%)

Prices

There was a steadying in the base quotes at Irish meat plants this week in response to tighter supplies of suitable cattle . In general, producers were offered a base price of €5.00/kg for steers with reports of up to €5.15/kg available.

Starting quotes for heifers are in the region of €5.05/kg this week with similar room for negotiation being reported. The trade for young bulls was also described as steady, with prices of between €5.10/kg and €5.15/kg on-offer for R grading animals under 24 months of age.

The cow trade remains relatively steady, with well-fleshed O grading cows being offered prices of €4.45-4.50/kg, with a range of €4.60-4.70c/kg available for good quality R grading cows. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

For the week ending 10 August 2024, the average price paid by Irish beef processors for R3 increased marginally to €5.01/kg. This remained 29c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.72/kg. Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

EU and UK prices

Across the EU, the average reported price for R3 grading young bulls was €5.07/kg (excluding VAT) for the week ending 10 August, 2024. This is 29c higher than week 32 of last year when prices averaged €4.78/kg for this category.

In Britain, tighter cattle supplies and firm demand have meant deadweight beef prices have started to firm again. This week the average UK R3 steer price increased by 3c/kg to €5.70/kg (equivalent to £4.90/kg)

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Cattle market

The cattle market has been generally positive with a 12% lift in the heavy steer price, while yardings eased by 24,406 to 50,244 head (a 30% reduction).

The Processor Cow Indicator rose by 20¢ to 290¢/kg liveweight (lwt) while the Dairy Cow Indicator eased by 4¢. According to the Processor Cow Indicator, prices in NSW lifted by 10¢, while prices eased by 8¢ in Victoria. At Shepparton, beef cows did not have as much weight compared to previous weeks with fewer finished cattle.

The Heavy Steer Indicator lifted by 38¢ to 359¢/kg lwt, with prices 40% above those from a year ago. Queensland prices rose by 31¢ due to substantial lifts in price from Roma and Charters Towers. Victorian prices eased by 10¢, where the quality of yarding was very mixed and a variety of weights limited the price.

Sheep market

The sheep market moved sideways with the exception of the Restocker Lamb Indicator. Yardings held firm, only slightly easing by 3,232 to 272,614 head, with decreases in both lamb and sheep yardings.

The Heavy Lamb Indicator eased by 13¢ to 811¢/kg carcase weight (cwt). There was a price decline of 7¢ at Wagga, where heavy lambs were in short supply and there was a larger number of grain-assisted trade lambs. Victorian prices eased by 77¢, with the largest decline of 104¢ occurring at Bendigo. The best heavy lambs at Bendigo sold for $212–$250 tracking from 900¢ to 950¢/kg.

The Restocker Lamb Indicator lifted by 119¢ to 635¢/kg cwt. Prices lifted by 125¢ in NSW. Wagga prices increased by 191¢ due to newer season lambs entering the market, while prices at Tamworth eased by 181¢ (driven by a mixed quality of lambs with a couple of well-finished lambs). Victorian prices eased by 45¢, with the largest decline at Hamilton.

Slaughter

Week ending 9 August

Cattle slaughter eased by 2,490 to 138,174 head; slaughter has been flat for the past five weeks with slight movements in slaughter across all states. Queensland slaughter eased by 2% to 71,761 head. Year-to-date, WA had the largest drop in slaughter by 33% to 2,663 head. Victorian slaughter eased by 185 head to 1,194 head (a 6% reduction compared to a year ago).

Sheep and lamb slaughter eased by 41, 459 to 575,331 head. SA processor shutdowns have reduced weekly lamb slaughter by 6% to 430,004 head. For the second time in 2024, slaughter is 3% below the same time last year, indicating supply might be tightening during the third quarter. NSW lamb slaughter declined by 5% to 116,358 head.  Sheep slaughter eased by 14,525 to 145,327 head. NSW decreased by 21% to 54,698 head and SA slaughter eased by 70% to 54,698 head.

MLA

Throughput

There were 32,858 cattle processed in DAFM approved plants during the week ending August 3rd 2024, taking throughput for the year to date to 1,038,426 head. This is a +8,731 head or 2% increase on the corresponding period in 2023 when a total of 1,029,695 cattle were processed. There have been 739,281 prime cattle processed in the first 31 weeks of 2024, a 8% decrease from the same period last year (-6,286 head). Cow throughput has remained strong with 260,065 cows processed so far this year, a notable increase of 24,890 head (+10%)

Prices

There was a weakening in the base quotes at Irish meat plants this week. In general, producers were offered a base price of €4.95/kg for steers, while the starting quote for heifers consisted mostly of €5.00/kg. The trade for young bulls was also described as steady, with prices of between €5.30/kg and €5.35/kg on-offer for R grading animals under 24 months of age.

The cow trade remains relatively steady, with well-fleshed O grading cows being offered prices of €4.40-4.60/kg, with a range of €4.70-4.80c/kg available for good quality R grading cows. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

For the week ending August 3rd 2024, the average price paid by Irish beef processors for R3 decreased by 2c/kg to be €5.00/kg. This remained 28c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.72/kg. Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

EU and UK prices:

Across the EU, the average reported price for R3 grading young bulls was €5.05/kg (excluding VAT) for the week ending August 3rd  2024. This is 31c higher than during Week 31 of last year when prices averaged €4.74/kg for this category.

In Britain, tighter cattle supplies and firm demand have meant deadweight beef prices have remained strong. This week the average UK R3 steer price remained the same to be €5.76/kg (equivalent to £4.91/kg).

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Quotes 

Base quotes for spring lambs from the major processors have improved again this week with €7.00- €7.20/kg (+QA bonus) on offer. Relatively tight lamb supplies combined with some stability in demand from the domestic and export markets have contributed to this firming of the trade.

Tighter lamb supplies are also a feature in other key lamb producing regions of Europe and the UK with the latest Eurostat figures indicating a contraction in breeding flock numbers in many regions. The Irish ewe flock contracted by 3.7 per cent in the December 2023 census versus December 2022 levels. This decline in the ewe flock of 107,000 head is one factor contributing to the tightness in supplies currently.

Prices

Last weeks reported deadweight price increased to €7.10/kg, an increase of 5c/kg from the week previous and reflective of the slight improvement recorded in quoted prices from the major lamb processors. In the corresponding week in 2023 the reported deadweight price was €6.35/kg.

The deadweight trade has also improved across the UK regions. Reported spring lamb prices came back marginally in mainland GB at the equivalent of €7.67/kg (-3c/kg) while in Northern Ireland there was a notable improvement again in the trade to €7.09/kg (+13c/kg). Relatively tight supplies of lamb for slaughter in Northern Ireland combined with competition from the live export trade to both mainland GB and ROI contributed to this firming in the trade.

 

Southern Hemisphere prices remain well below European prices however they have improved significantly over the last few weeks, narrowing the price differential with the EU. With a lead time on product shipments this recent improvement in deadweight prices should impact their competitiveness on EU markets in the medium to  longer term.

Demand for Southern Hemisphere lamb in China has remained somewhat subdued in recent months however reports of stable demand in the Middle East and the US has helped redivert product away from key European markets. Prices in Australia and NZ, decreased and increased slightly respectively to be the equivalent of €4.74 and €3.72.

 

Throughput

The total sheep kill in DAFM approved plants last week, came back slightly to 49,465 head. Though a slight increase the week previous, the kill continues to track lower than 2023 levels with 55,527 sheep processed in the corresponding week last year. This has been a feature of the 2024 lamb season to date with a smaller lamb crop, a difficult lambing and changeable grass growing conditions all impacting lamb availability for processing.

The spring lamb kill for 2024 YTD totals 431,00 head, a decline of approx. -71,000 head or 18 per cent from the same period last year. The supplies of spring lambs are expected to increase in the weeks ahead as more mid-season lambing flocks start to present lambs for processing.

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Quotes 

Base quotes for spring lambs from the major processors have improved slightly this week with €6.90-€6.95/kg (+QA bonus) on offer. Relatively tight lamb supplies combined with some stability in demand from the domestic and export markets have contributed to this firming of the trade.

Tighter lamb supplies are also a feature in other key lamb producing regions of Europe and the UK with the latest Eurostat figures indicating a contraction in breeding flock numbers in many regions. The Irish ewe flock contracted by 3.7 per cent in the December 2023 census versus December 2022 levels. This decline in the ewe flock of 107,000 head is one factor contributing to the tightness in supplies currently.

Prices

Last weeks reported deadweight price firmed to €7.04/kg, an increase of 5c/kg from the week previous and reflective of the slight improvement recorded in quoted prices from the major lamb processors. In the corresponding week in 2023 the reported deadweight price was €6.53/kg.

The deadweight trade has also improved across the UK regions. Reported spring lamb prices held stable in mainland GB at the equivalent of €7.70/kg (+1c/kg) while in Northern Ireland there was a notable improvement in the trade to €6.96/kg (+31c/kg).

Relatively tight supplies of lamb for slaughter in Northern Ireland combined with competition from the live export trade to both mainland GB and ROI contributed to this firming in the trade.

 

Southern Hemisphere prices remain well below European prices however they have improved significantly over the last few weeks, narrowing the price differential with the EU. With a lead time on product shipments this recent improvement in deadweight prices should impact their competitiveness on EU markets in the medium to  longer term.

Demand for Southern Hemisphere lamb in China has remained somewhat subdued in recent months however reports of stable demand in the Middle East and the US has helped redivert product away from key European markets.

 

Throughput

There was a marginal increase in the total sheep kill in DAFM approved plants last week to 47,624 head. However the kill continues to track lower than 2023 levels with 54,417 sheep processed in the corresponding week last year. This has been a feature of the 2024 lamb season to date with a smaller lamb crop, a difficult lambing and changeable grass growing conditions all impacting lamb availability for processing.

The spring lamb kill for for 2024 YTD totals 389,000 head, a decline of 85,000 head or 18 per cent from the same period last year. The supplies of spring lambs are expected to increase in the weeks ahead as more mid-season lambing flocks start to present lambs for processing.

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Cattle & Beef

Throughput

There were 32,858 cattle processed in DAFM approved plants during the week ending July 27th 2024, taking throughput for the year to date to 1,005,993 head. This is a +10,143 head or 2% increase on the corresponding period in 2023 when a total of 995,850 cattle were processed. There have been 715,952 prime cattle processed in the first 30 weeks of 2024, a 1% decrease from the same period last year (-2,155 head). Cow throughput has remained strong with 251,875 cows processed so far this year, a notable increase of 23,353 head (+9%)

Prices

There was a weakening in the base quotes at Irish meat plants this week. In general, producers were offered a base price of €4.95/kg for steers, while the starting quote for heifers consisted mostly of €5.00/kg. The trade for young bulls was also described as slightly slower, with prices of between €5.30/kg and €5.35/kg on-offer for R grading animals under 24 months of age.

The cow trade remains relatively steady, with well-fleshed O grading cows being offered prices of €4.40-4.60/kg, with a range of €4.70-4.80c/kg available for good quality R grading cows. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

For the week ending July 27th 2024, the average price paid by Irish beef processors for R3 decreased by 4c/kg to be €5.02/kg. This remained 23c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.79/kg. Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

EU and UK prices:

Across the EU, the average reported price for R3 grading young bulls was €5.04/kg (excluding VAT) for the week ending July 27th 2024. This is 28c higher than during Week 30 of last year when prices averaged €4.76/kg for this category.

In Britain, tighter cattle supplies and firm demand have meant deadweight beef prices have remained strong. This week the average UK R3 steer price remained the same to be €5.76/kg (equivalent to £4.91/kg).

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MLA

Quotes

Base quotes for hoggets from the major processors have tightened this week with base quotes of €7.00-€7.20/kg (+QA bonus) on offer. Prices have continued to come under pressure this week with reports of weaker demand from some major customers for Irish lamb.

Ireland exports approximately 85 per cent of the lamb produced in the country and the domestic deadweight trade is exposed to developments in supply and demand balances in our export markers. The weakening in deadweight prices is reflective of the more competitive landscape in our export markets with all of our key European export markets recording a reduction in lamb imports for the first four months of 2024 in both volume and value terms.

Spring lamb throughput this year is back by approximately a third from 2023 levels with poor weather conditions, a decline in the ewe flock and later lambing dates contributing to this trend. Current deadweight process are being maintained ahead of previous years due to a tighter availability of suitable sheep for slaughter, a trend that is also reflected in mainland Europe and also in Great Britain.

 

Prices
Last weeks reported price increased to €7.69/kg, a decrease of 35c/kg from the week previous. In the corresponding week in 2023 the reported price was €7.04/kg. The deadweight trade has also come under some downward pressure in the UK regions.

Reported spring lamb prices were the equivalent of €8.08/kg (-75c/kg) in mainland GB last week while the reported price in Northern Ireland was €7.29/kg (-62c/kg). Southern Hemisphere prices remain well below European prices which makes Southern Hemisphere product very competitive on EU markets, even with the extra costs of transport factored in.

Deadweight lamb prices in Australia and New Zealand were the equivalent of €5.08/kg and €3.70/kg respectively last week however have shown signs of increasing over the last month and narrowing the differential with European prices.

 

Throughput
The total sheep kill in DAFM approved plants for week ending July 9th 2024 was 48,386 head, back marginally from the corresponding week in 2023. Throughput for the year to date has totalled 1,289,879  head, 11% behind the corresponding period in 2023. The hogget kill for the year to date has totalled 890,682 head, operating 9% behind 2023 levels.

Meanwhile the ewe/ram kill year to date is back by 21,873 head (-15 %) to 123,544 head. Spring lambs have been increasingly coming forward for processing  with 272,720 processed so far this year. The supplies of spring lambs are expected to increase in the weeks ahead as more mid-season lambing flocks start to present lambs for processing.

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