FEEDER cattle prices are facing downward pressure, with a flush of cattle pushing most grids down 10-30c in the past fortnight and one large multi-site lotfeeder issuing no quotes.
Ladysmith Feedlot, near Wagga Wagga. Source: LAWD
Southern Angus prices appear to have taken the biggest hit, with most yards now quoting heavy feeders around 500c – which is 40c less than a month ago.
Paddock prices have been holding up better in the north. 400kg+ flatback feeder steers to feedlots on the Darling Downs are making between 455c (+10c for HGP free) and 480c/kg – with most quotes around 475c.
One large multi-site lotfeeder says it is issuing no quotes for feeder cattle in both its Queensland and southern operations.
The saleyard-based feeder steer indicator has been reasonably steady for the best part of a month now, however, heavy feeder cattle have dropped 10c in the past week.
Big numbers filling southern yards
While southern yards have largely been driving the rise in the feeder market since the middle of this year, several buyers told Beef Central this morning that the supply and demand situation changed quickly in the past fortnight.
Many producers from New South Wales, predominantly from areas south of Dubbo, started looking to sell large numbers.
There is generally a flush of numbers at this time of year, with producers in the mixed farming areas turning cattle off before harvest.
However, some buyers said seasonal conditions were also playing a part with hot and dry weather at the start of Spring changing the colour of the grass.
Last Thursday’s Dubbo cattle sale saw average prices for heavy feeder steers drop 28c/kg to average 460c. AuctionsPlus saw a similar trend, with +400kg feeder steers losing 23c/kg to average 495c, clearing only 44pc of the offering of 758 head.
Results from the Wagga cattle were not in by the time of this report, with a big yarding of 5700 scheduled in after not holding a sale last week due to the King’s birthday public holiday.
Qld market holding up with the numbers
The market in Queensland appears to be holding up better than the southern half of the country, with most paddock quotes still having around 475c/kg to start this week. However, some of the bigger operators have already dropped their grids by 20c or issued no quote.
Some scattered storms have fallen through Qld.
Cattle are still coming down from the north and buyers are still heading north to quote on feeder cattle, however, it is starting to slow down ahead of summer.
Weather is becoming more topical, with a hot, dry and windy start to Spring putting pressure on what is a big body of feed.
Last week’s saleyards held firm, with the average price of 343 heavy feeders at Roma gaining to 10c to 479c/kg and 729 heavy feeder steers at Dalby staying steady at 472c/kg.
Storm rain has started to fall in Qld after a hot and dry start to spring, with patch storms in the Southern part of state, through to Tambo in the west and north of Cloncurry in the gulf country. More storms are on the forecast in this week.
- To read more on feeder prices, click here for last week’s update on Wagyu prices