Australia: cow prices fall as record yardings weigh on the market

Cow prices in Australia came under renewed pressure last week as record volumes of cattle continued to flow through saleyards in northern New South Wales, according to Beef Central.

The surge in supply has translated into lower prices.

Meat & Livestock Australia’s processor cow indicator fell A$/¢/kg 25 in the week to A$/¢/kg 290 cwt, dropping below the A$/¢/kg 300 mark for the first time since July last year. Over the past month, the indicator has declined A$/¢/kg 50.

The heavy flow of cows has been building for several months. March set a new national record for cow yardings at 84,069 head.

Despite the recent correction, the market remains historically firm. Good heavy cows are still achieving values around A$ 2.200.

The strength in the 90CL trimmings market continues to provide underlying support. Prices have recently reached as high as A$/¢/kg 1.199, with the latest quotes around A$/¢/kg 1.150. Strong demand from the United States —where the herd remains at historically low levels— as well as interest from Europe, continues to underpin values for manufacturing beef.