Young cattle prices are dropping as producers in drought-hit areas offload cattle rather than feed through winter. Most cattle market categories have reported sharp declines in prices.

Agents anticipate the flood of supplies in the south will continue for at least three weeks, while supply in Queensland is tightening as sellers with feed are waiting for better prices.

Due to the early southern sell-off along with non-core breeders, almost 50,000 head were sold in Victoria in just one week. With no rain forecast for the rest of May for much of South Australia, Victoria and Southern NSW, cattle continue to move. Young cattle prices dipped below 700c/kg cwt and cow prices have fallen back to March levels, but remain 20% ahead of the same time last year. The national cow indicator has dipped below 200c/kg liveweight.