ISOLATED patchy falls across across parts of Queensland, Central Australia, southern Victoria and South Australia – and the prospect of more in coming days – has slowed booking inquiry for direct consignment cattle in some areas this week.
In contrast with the previous week when oppressively hot conditions were driving sentiment and pushing cattle forward, scattered storms since the weekend have provided some optimism for vendors looking at dry paddocks. See today’s BOM weekly rainfall update.
With less than nine weeks’ kill left for many export processors in 2025, some operators are now wary that any more widespread rain could quickly see slaughter cattle supply dry up, after what was a relatively secure position only a week or two earlier.
There have been a few minor supply and logistics disruptions this week caused by local storms across Queensland, but nothing causing any major setbacks. Local isolated falls as far north as Camooweal and as high as 40mm around Nebo have been recorded this week, and perhaps more importantly, added some optimism among those in need of rain.
Kills show strong rise, led by Qld, Vic
There was a sharp lift in national slaughter last week, but some of it at least was catch-up for earlier short weeks.
Nationally, the seven day kill to Friday rose to 158,511 head – the highest number seen since late June.
Just two states were responsible for the bulk of the 5500 extras killed last week, over the week before.
Queensland numbers lifted by 4900 head, with several plants scheduling extra shifts to clear some backlog, and the additional Friday shift now in place at JBS Dinmore adding another 1600 to the state’s weekly tally. In fact it was Queensland’s largest kill this year, accounting for 84,290 head, or 53.2pc of the national total for the week.
Victoria was the other big mover, with last week’s kill of 26,433 head up 1444 or 6pc on the previous week, driven by a little more local supply, plus a softening in northern saleyards prices motivating some Vic processors to rekindle buying out of Queensland.
In other states, several plants that had extended seasonal closures earlier are now back at work.
Worth noting is the trend in the national female slaughter ratio, which for the past six weeks has sat between 42pc and 45pc – some of the lowest numbers seen this year – suggesting slaughter cows and heifers are becoming harder to find.
Direct consignment rates
In Queensland, competitive export processor direct consignment grids are mostly unchanged this week, after some 10c/kg downwards adjustments a fortnight or three weeks earlier.
Plants in southern Queensland this week have offers of 690c/kg on heavy cows and 760c with a HGP (some offers 770c/kg no HGP). Central Queensland plants are 20c/kg behind those rates.
For grainfed 100-day cattle, forward contracts for February delivery to plants in southern Queensland have prices at 820c/kg this week, in the case of implanted steers. For non-implanted cattle, one forward contract quote is showing 880c/kg – an unusually wide gap over cattle with a pill, which is typically more like 30-40c. One contact suggested this reflects additional demand out of China for no-HGP beef, in the absence of US export supply.
In southern states, local supply has continued to gain some traction this week. After earlier declines of 10-20c, most offers are unchanged this week, with quotes out of eastern parts of South Australia and southern NSW seen this morning of 810c/kg on four-tooth grass ox and 740c/kg on good heavy cows.
Most producers looking to take advantage of August/September high prices for slaughter cows now appear to have made their move, and numbers appear to be in decline, with a consequent lift in price in the yards.
Saleyards channel: cows show some uplift
Wodonga sale this morning yarded 1295 head, up slightly on last week. Quality improved, with some good, well finished stock. The usual group of buyers were in attendance along with a major export processor. Demand fluctuated around quality and breed with feedlots dominating on well-bred stock. On the export side heavy steers and bullocks were in reasonable supply and competition was strong, selling from 424-468c/kg. Heavy cows received premium rates for the Angus portion, which resulted in prices lifting 10c/kg, the bulk making from 376-415c/kg. Leaner cows less than 520kg were very mixed selling from 330-375c/kg.
Gunnedah penned 3020 mixed quality cattle this morning, up 11pc on last week. An extra cow buyer saw that category rise sharply particularly for the heavy drafts. Heavy feeders were down 13c/kg selling from 408-488c/kg. Heavy processor heifers gained 34c to sell from 391-409c/kg. Heavy grown heifers to process were up to 15c/kg better 396-448c/kg. Score 3 and 4 cows gained 12-18c to sell from 360-420c/kg.
Roma store sale this morning yarded almost 7500 head, up 1500 on last week. Cows were yet to sell at the time of this interim report, but among processor cattle, grown steers 400-to 500kg sold from 416-486c to average 466c/kg, steers 500-600kg sold from to 426c/kg and bullocks +600kg sold to 430c/kg. Full report tomorrow.
Naracoorte yarded less than 1000 head today, following decent weekend rain. Large numbers of cows are still being penned, making up 60pc of the yarding. Heavy score 3/4 cows improved 5-10c/kg selling from 395-428c with the 1/2 scores selling from 300-401c/kg. Lighter cows sold from 240-344c/kg.
Mortlake sale yesterday yarded 1249 head, up a little on the previous week. Overall the quality was plainer across most categories with fewer supplementary fed cattle particularly in the trade weight classes. The bullock and grown steer offering was mixed consisting mainly of manufacturing types. The cow yarding comprised approximately 60pc beef cows with the remainder being dairy bred. Despite the drop in quality the market was stronger with prices for bullocks, grown steers, and trade cattle rising by 20c/kg and more in places. Bullocks sold to a top of 470c/kg. Grown heifers ranged from 400-470c/kg, and grown steers sold to a top of 486c/kg.