Sunday 05 August 2012
Feeder prices at saleyards reported by MLA’s NLRS were largely steady this week, with the national indicator at its highest level since mid-March.
Prices have gradually increased since June, with the eastern states feeder price closing Thursday’s market at 206¢/kg lwt.
This still remains 15¢ off the peak registered in December 2011 of 221¢/kg lwt.
Direct to works prices also increased this week as contributors raised prices to secure cattle.
Feeder buyers remained active across the majority of cattle markets despite the recent spike in grain prices.
With supply pressures remaining across international markets, there is a strong possibility that feed grain prices will continue to rise, making feed purchasing more difficult and costly.
Higher prices for feed grain may lower demand for suitable feeder cattle, with lotfeeding margins already under pressure.
The supply of suitable feeder cattle reportedly remains at good levels, despite winter historically being a difficult time to source suitable stock.
Above average seasonal conditions throughout winter, particularly in Queensland, has seen producers retain vealer stocks to grow to suitable feeder weights.
Supply in Queensland so far this month has seen a significant rise, with 12% more cattle sold to feeders than the corresponding period in 2011.
NSW has also yarded 50% more cattle over the same period.
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