THE feeder cattle market may be nearing the bottom of the current cycle, as seasonal supply dynamics change and a rain system builds through the centre of the country.

While the feeder market has been one of the stronger segments of the cattle market in recent times, it has been on the slide since the start of March, when crossbred steers on the Darling Downs were around 490c/kg.

Buyers who spoke to Beef Central this morning were quoting 400kg+ flatback feeder steers on the Darling Downs between 440-450c/kg – down 10c on the past fortnight. One buyer in Central Qld said some higher Bos Indicus content steers were coming on the market around 430c/kg.

There is a feeling that the price may be nearing the bottom of its current cycle, with the big flush of feeders from dry parts of Southern Queensland and Northern New South Wales now starting to slow in replacement for the annual turn-off from the North.

Most lotfeeders on the Darling Downs are at least booked out for May and into the middle of June. Although Beef Central was told that inquiry has slowed down on the current grid prices, with the market largely expected to remain steady for a while.

Angus prices remain solid

As the supply slows down from the south, the market for Angus feeder steers has picked up with southern buyers quoting between 525-530c/kg – up about 5c on the last feeder market report. EU accredited steers are still at the top end of that market.

One southern lotfeeder was quoting Angus heifers at 470c/kg.

Angus prices are similar in the north, with most yards quoting at 520c/kg and one grid at 490c/kg.

Optimism building in the market

Sources who spoke to Beef Central this morning said they were expecting the market to remain strong for a while and possible even rise in the next week.

According to last week’s Weekly Kill column, 100-day grainfed forward contracts for August delivery were at 840c/kg carcase weight. There is feeling that September may be similar.

However, many are looking towards the October forward contract, which go onto feed June – as that will most likely be the month when tariff-free beef starts re-entering China.

There is also a promising rain system building in Central Australia, which is forecast to bring falls from the Northern Territory right through to Victoria and potentially into dry parts of Northern NSW. While still unfolding on the Bureau of Meteorology’s eight day forecast, the falls could be widespread but not big totals.

Beef Central was told that there are plenty of paddocks in dry parts of NSW that have been dry-sown for oats crops, a situation best described by Canowindra-based hay grower and sheep producer Charlie Blomfield in this video released last week.