FEEDER cattle grids have opened this week 20c dearer than the past fortnight – with many crediting the rise in restocker confidence for the latest surge.

Heavy 400kg+ flatback feeder steers heading to the Darling Downs are being quoted between 440-460c/kg – with one large lot feeder quoting 430c, and some reports of 470c suggesting the market is lifting this week.

Angus feeder steer quotes have ranged from 510-545c/kg, with most hovering around the 530-540c mark.

British crossbred (no indicus) cattle are being quoted around 480c in both southern and northern feedlots.

The feeder market has been rising alongside a surge in restocker confidence, with consistent rain across New South Wales, Victoria and South Australia pushing producers from drought impacted areas back into the market.

One buyer who had recently travelled across Western and Northwest Queensland told Beef Central that although grass has dried out, there is still a big bulk of feed and that many producers in that area are not in a hurry to bring cattle to market.

Many traders are also facing a high cost of buying back in, which he felt was inspiring them to take cattle through to heavier weights.

One large-scale Queensland backgrounder said he was buying in anticipation for the feeder market increasing. He had purchased some medium weight steers around 350kg, with the lead coasting 515c/kg, with the feeder market needing to rise on current levels  to make a margin.

Southern feedlot buyers are still operating a long-way north of home, with plenty of cattle heading down to Vic and SA from Central NSW and north. Feedlot buyers evidently came from a long way south to attend a special sale at Blackall today, held by local stud Lambert.

Saleyard indicators increasing

Saleyard prices have also started this week strong, with heavy feeder steers increasing at both the Wagga and Tamworth sales. Prices for 400kg+ feeder steers increased by 18c at Wagga to average 514c/kg and by 5c Tamworth to average 506c – with those reports not differentiating Angus and other cattle.

Wagga reporter Leanne Dax said the competition from lotfeeders was one of the main factors pushing the market higher.

The National Feeder Steer Indicator increased by 6c last week to close at 473c, with the heavy 400kg+ steers averaging 479c. Of the 8114 cattle contributing to the indicator, 7500 came from Qld and NSW, with 4134 from Qld.

Southern drought changes hay habits

While ration prices appear to be favourable for many lotfeeders, one commodities buyer said they have had to change their preference for roughage, with cereal hay prices getting too expensive after the southern drought and flooding on NSW coast.

“A lot of feedlots up here have learned to use Rhodes grass, because cereal hay has priced itself out of the ration,” an industry source said:

“Rhodes grass hay is $100/t cheaper.”