THE feeder market has steadied in the past fortnight as forward contracts for 100-day cattle catch up to the rally in paddock prices over the past two months.

JBS Prime City yard

On the Darling Downs, 400kg+ flatback feeder steers out of the paddock are ranging between 470-485c/kg, which is up about 10c on the last feeder market update.

Angus prices in the north are ranging between 520-530c/kg, with southern Angus prices making between 530-550c/kg – with both markets steady.

Southern crossbreds (no indicus) were ranging between 475-490c/kg.

Meat & Livestock Australia’s saleyard-based feeder steer indicator is showing a steadying of the market in the past month. It peaked at 486c/kg at the start of September and opened today 474c/kg.

Early sales this week are showing a similar trend with 343 heavy feeder steers sold at Wagga averaging 512c/kg, which is similar to last week. Market reporter Leann Dax said there was strong demand for straight-bred Angus cattle, with less competition for other types.

Feeder prices were also steady at Tamworth.

Feedlots are now through their Christmas shutdown period for 100-day cattle and are working to fill forward contracts for January. Forward contracts and grain prices are helping demand.

January forward contracts appear to be catching up to the rally in feeder prices over the past two months, with buyers today telling Beef Central that they were expecting most January contracts to be above 800c/kg carcase weight.

Last week’s Weekly Kill column reported some processors had released 100-day forward contracts around 820c/kg carcase weight for flatbacks.

With paddock prices for feeder steers pushing into the high 400c/kg mark in the past month, many lotfeeders had been saying that forward contracts would need to lift from the 770-780c/kg December contracts to sustain the current market. It appears they have responded.

The other side of demand for feeder cattle is ration cost, which appears to be on a downward trend – as last week’s Week in Beef podcast pointed out.

Harvest has already started in Central Queensland, a big wheat and barley crop is expected across the Eastern seaboard and a competitive global market is pushing prices down.

Southern season at a crossroads

While northern grain crops are almost ready to go, southern lotfeeders are saying more rain is needed to finish their grain crops.

The season in the south is precariously placed, with spring pasture starting to grow after good steady rain for most of winter.

One feedlot buyer told Beef Central this morning that if there is good rain in the next couple of weeks than the drought will be a memory. But if there is no rain, then the season could deteriorate quickly.

He said a lack of surface water is still a worry for some producers and cattle have come on the market in recent weeks for that reason.

Some more rain is forecast in Victoria and Southern parts of South Australia in the next week.

BOM eight day forecast from from September 29.

Big numbers still coming out of the north

While there is big body of feed across large parts of Qld, there is a similar belief that no rain in the next month could pick up the numbers of cattle coming onto the market.

Big numbers are still flowing in Qld, with truck drivers busy taking cattle down into southern feedlots and processing plants.

Roma saleyards has 9000 head on the draw for this week after doing similar numbers for most September.