FEEDER cattle prices are showing little variation this week, as big rain shuts roads in the north and completely misses dry paddocks in New South Wales and Southern Queensland.

Most of the cattle heading into feedlots are coming from NSW, with a record Monday yarding at Tamworth of 7100 head and 7500 on the draw for tomorrow’s Gunnedah sale. Meanwhile, another big rain system is making its way through Central Australia.

Angus prices are firm to 10c dearer compared with our previous report a fortnight ago, with feedlot buyers quoting between 500-520c/kg in the north and 510-520c/kg in the south.

400kg+ flatback feeder steers on the Darling Downs were being quoted this morning around 490c/kg, which is similar to early March. Numbers have been hard to obtain in this market, with widespread rain restricting the flow of cattle and limiting transactions.

Some Darling Downs lotfeeders are expecting the odd pen to be empty this week as the wet weather makes it hard to induct new cattle, as pens close-out. They do have some ability to manage the situation, with the option of feeding longer than the customary 100-days.

Early saleyard results this week are similar to paddock prices, with 416 heavy feeder steers at Tamworth averaging 505c/kg and 297 heavy feeder steers at Wagga averaging 500c/kg.

Beef Central was told that the general trend at Tamworth was a firm Angus market and slightly cheaper crossbred market, with top pen of Angus steers making 525c/kg and the top pen of crossbreds making 498c/kg.

Will the Angus spread widen?

While the premium for Angus cattle over crossbred cattle has widened slightly in the past fortnight, it is subdued compared to the Feeder Cattle Market report in the middle of March last year.

Angus feeder steers were about 35c dearer than crossbred cattle, compared to the 20c this week. It must be said the entire feeder market is about 100c dearer than it at the same time last year.

StoneX national livestock manager Ripley Atkinson said he was expecting to see Angus prices rally in the next month and widen its spread to crossbred cattle.

Producers in Northern NSW have been busy for at least a month, with consistently large yardings at Tamworth and Gunnedah, along with direct consignments to feedlots.

Elders’ economist Richard Koch said he believes the numbers coming out of Northern NSW are holding the market back from gaining another 10-20c.

Rain continues to fall across the north

For producers in dry areas looking to sell cattle or put them on agistment, there are plenty of homes. Most of Central and Northern Qld is still not moving after flooding rain last week and a big system is moving its way through the Northern Territory.

The system is forecast to go through the NT, into South Australia and fizzle out into Western NSW and Victoria.

One southern producer told Beef Central this morning that he was expecting this week’s rain to set them up for winter crops.

The weather bureau is also tracking a tropical low in the Coral Sea.