Northern cattle markets are seeing higher demand from Indonesia for medium weight steers in the 380-480kg range, but finding supply is proving a challenge.
Rising feed costs in Indonesia and a need to fill supply chain gaps have been the main reasons put forward to explain why Indonesian importers are chasing heavier cattle to feed for shorter periods to reach market weights.
However trade sources are reporting that suitable cattle are proving hard to find in the Northern Territory, where most cattle are in the 280-380kg range.
Good numbers are likely to be available in Queensland, but current rates being offered are not enticing producers to take that option.
Elders Queensland/NT State Livestock Manager Scott Mawn said feedlot demand is pulling some of those cattle with the right dentition further south, while many northern producers still have a good bulk of feed after a late and long wet season, and are opting to hold cattle to add weight.
With the challenging August-September period in the north approaching there were a lot of cattle moving onto the market, but they were being readily absorbed at present, Mr Mawn said.
“We’re moving into the pointy end of the season, August-September, which happens every year in northern Australia.
“Just at the present time there’s a lot of cattle for sale in Queensland – 10,000 at Roma this week and two sales at Charters Towers a week (a prime sale and a store sale) for the last five to six weeks which is indicative of the numbers of cattle that are available.
“And they seem to be shifting them at reasonable rates.
“Your better cattle are attracting a lot of competition, particularly if you have got weight, generally speaking the market is pretty good.”
Liveweight prices at Darwin port are being quoted at rates around 340c for feeder steers and 320c for medium steers, which equates to around 310c and 290c respectively in Cloncurry in North West Queensland when the 30c/kg freight differential is removed.
With existing demand, sources say those rates are not enticing cattle forward into that market, with shipping activity from Townsville well back so far this year, with orders for heavier cattle to Vietnam also relatively limited.
Mr Mawn said demand from southern processors for cows and bullocks remained strong right up into northern Queensland and the Northern Territory.
“They have run out of the heavy cattle down south and they’re just chasing weight and cover.”
