COMPETITIVE tension between supply-starved southern beef processors and those further north in Queensland and NSW has pushed some direct consignment grids higher again this week.

After a couple of weeks where it looked like southern processors were easing back on procurement out of northerly regions, the pace has picked up again over the past week, with strong buying activity on cows out of the paddock as far north as Hughenden and Blackall, as well as Queensland saleyards in tick-free country.

What’s clearly evident is the decline in supply of good slaughter cows in Queensland/NSW saleyards that’s now occurring. Abundant supply of cows was effectively providing a ‘lifeline’ for a bunch of supply-starved southern processors.

Where only a few weeks ago Roma and Dalby weekly sales were offering 1700-2000 cows each per week (motivated vendors at the time where watching cow prices soar to 400-440c/kg liveweight), those numbers are now well in decline. There is barely a thousand cows being offered in Dalby tomorrow, in an expected yarding of 7500 head.

Across the border, there were less than 300 cows included in a yarding of 3300 at Gunnedah this morning. Spring calving is likely another factor in the decline in access to slaughter cows, with some spring calving programs likely a month earlier this year than in 2024, one cattle buyer contact suggested.

Cow indicator numbers slashed

The declining cow offering is clearly reflected in the NLRS slaughter cow indicator, where today’s indicator entry of 369c/kg reflects the sale of only 5400 eligible saleyards cows over the past week. Compare that with the peak of the cow market a month ago, when the indicator hit 375c/kg in early August, but represented well over 10,000 cows sold out of saleyards in the seven-day cycle.

All that is evidently forcing southern processors into more paddock procurement to keep their chains moving.

Good slaughter cows hit 440c/kg at multiple northern selling centres during the first week of August, forcing some southern operators to rein-in northern buying activity for a period, but five or six are again active in the northern market this week.

Some Queensland cattle buyers say slaughter cows are now likely to become scarce for a period, with any producers who were intent on cashing-in some cows to take advantage of the market having now done so.

“I think the cattle with weight will be tougher-going in the northern saleyards from around mid-September – potentially through to closer to the end of the year,” one veteran northern cattle buyer told Beef Central this morning.

Offsetting that, southern processors may soon start to see a few more killable cattle emerging at home, as spring temperatures start to gradually rise – but some may have to scale-back kills for a period, to adjust to supply conditions.

Grids march higher

Over the hooks quotes in Queensland this week show a reasonably wide spread, with some competitors yet to adjust grids upwards, while others have already shifted 20c/kg higher.

A serious breakdown in one very large Queensland shed last week may have contributed to the unusually wide price gap for direct consignment cattle seen this week, with some pre-bought cattle evidently backing up.

We’ve seen grids this morning showing four-tooth heavy ox in southern Queensland anywhere from 710c/kg to 730c/kg (740c available in some sheds for no HGP), and 640-660c/kg on good quality heavy cows.

Central Queensland plants are 20c/kg behind those offers.

Several southern Queensland export processors have forward contracts available for 100-day grainfed flatback steer for December delivery at 770c/kg, up 20c on November cattle. However contacts are saying at least 800c/kg is necessary to make the numbers stack-up, given current rising feeder steer prices. We’ll look at current grainfed pricing in an upcoming 100-day trading budget.

Most Queensland processors appear to have bookings covered reasonably well out to week commencing 22 September. Southern processors are generally more current.

Similarly in southern states, some processors have this week lifted rates by 15-20c/kg in over-the-hooks markets, following recent rain. We’ve seen grids in eastern parts of South Australia and southern NSW this morning at 740c/kg on heavy cows, and grass four-tooth ox no implant 810c/kg.

Those offers are now approaching the extreme record highs seen back in 2022-23, when the industry was still in full-on recovery mode after earlier drought, and slaughter cattle were scarce.

• There was no weekly NLRS slaughter report issued by the time this item was published. Results for the week ended Friday will be added here when they arrive.

Saleyards trading

Gunnedah sale this morning yarded 3300, up more than 1000 on last week. Cows accounted for less than 300 head. The market was similar to last week although dearer for the better drafts and crossbred feeders. Heavy grown steers to process sold from 358-408c/kg, while similar heifers made up to 456c/kg. Heavy cows were dearer, selling from 296-429c/kg.

Wodonga sale this morning yarded only 500 head. Demand was very strong due to the limited number of stock in each category. Heavy steers suitable for processors sold from 450-505c/kg. In the cow sale, heavy cows were in limited numbers making from 388-434c/kg. Leaner cows less than 520kg sold from 288-406c/kg.

Wagga sale yesterday yarded 2600, up 560 on last week, driven by dearer recent trends the previous sale. It was a sale where domestic and export processors struggled to maintain purchasing levels, feedlots emerged as dominant players, outbidding buyers on most of the cattle that were available. In the export market, feedlots continued to dominate, especially with heavy grown steers and bullocks, which sold between 400-475c/kg. Heavy steers suitable for feeding achieved prices ranging from 468 to 530c/kg. The supply of heavy cows was limited, leading to a price increase of 15c, with sales between 378-419c/kg. Leaner cows less than 520kg saw prices ranging from 266-379c/kg, reflecting the varied demand across different cattle types.

A preliminary Roma store report this morning showed a yarding of 8234 at this morning’s sale, similar to last week. Cows were yet to sell, but yearling steers +480kg sold to to 480c and bullocks +600kg averaged 402c.

Dubbo sale last Thursday saw numbers lift  by 2500 for a yarding of 6170. Grown steers and heifers were 17c to 30c cheaper with the prime grown steers selling from 425c to 490c/kg. Prime grown heifers sold from 420c to 470c/kg. Secondary cows were dearer while the prime heavy weights were firm. Score 2 and 3 cows sold from 310-382c while the prime heavy weight cows sold from 376-415c to average 395c.