THERE’s been some significant shifts in direct consignment prices on slaughter cattle over the past few days, as some processors become more current in their forward bookings.

While some companies are yet to shift their offers from what were fairly stable quotes seen over the previous three weeks, other have lifted rates 10-20c on both steer and cow since Monday.

In Queensland, there are still plenty of unpriced space-only bookings heading into August, but equally there are prices offered for kills weeks commencing 28 July and even 4 August.

Competition pressure from southern operators for local cattle is contributing to that.

Two-speed demand for northern cattle

What’s becoming evident this year is that there is a two-speed demand from southern states processors for northern cattle:

• Those southern plants that have access to a substantial (and more importantly, consistent) grainfed kill have a base to work from each week, before having to search for additional local cattle, or stock from further afield, to supplement their kills. The expansion of Australia’s traditional lotfeeding ‘hot-spot’ around the Darling Downs and northern NSW into less traditional areas further south and west is helping that process.
• For those southern processors that do not have access to a reliable weekly grainfed kill, the appetite and need for supply of expensive cattle trucked south out of Queensland is much greater. With single processors pulling as many as 450 head out of individual Queensland cattle sales in the past fortnight, some southern operators are clearly heavily reliant on stock out of northern Australia – specifically those yards in tick-free areas. Southern processors with good access to grainfed supply are clearly nowhere near as active in the northern market at present as those which do not.

Reports out of the market this week had one large line of cows sold over-the-scales at Morven at 330c/kg liveweight, or the equivalent of 640c/kg dressed weight, before freight.

Sales out of other tick-free yards recently included cows at Roma making 346c/kg last week, with another 2500 cows lined up for this morning’s Roma sale, but were yet to sell at the time this report was compiled. Prices from this morning’s Roma sale will be available in tomorrow’s weekly Roma store sale report. Top cows at Warwick this morning made 331c, also headed south for slaughter, and sold to 362c at Wagga yesterday (see saleyards trading summary below).

While its clearly getting dry in parts of Queensland now and frosts have taken their toll, at least a part of the large offering of cows hitting the market currently is motivated vendors, watching cow values ratchet-up over the past few months as northern and southern processors go toe-to-toe for the same item.

When an expensive freight bill (anything up to $120-$150 a head) is added to the procurement cost on northern cows at present, the price differential between steer and cow for southern processors is currently quite narrow – but perhaps less so for Queensland operators bearing a kinder freight bill.

Grids on the move

Grid prices are somewhat choppy at present, with some Queensland operators already lifting offers this week, while others are yet to move.

We’ve seen quotes this morning on four-tooth grass export steer from export processors in the southern regions of Queensland anywhere from 630c to 650c/kg, and heavy cows 550-580c/kg.

Processors in the Central Queensland region are 10-20c behind those rates, 620-630c on the steer and 530-540c/kg on heavy cows.

In southern states, there are signs of sharp rises in some direct consignment offers, typically +20c on both cows and steers – all supply-related. In eastern parts of South Australia, grids are showing 650c on heavy cows and 730c on four-tooth grass ox – the highest seen all year. Competitive operators in southern regions of NSW also show best cows on 650c and four-tooth grass heavy steer 730c.

A specialist cow processor in southern NSW has a grid out this week for heavy cows +300kg for delivery week commencing 21 July of 615c/kg, with lighter cows 275-300kg at 605c.

Saleyards trends

Saleyards numbers have mostly trended higher this week, as the effects of frost start to take hold.

There was a big yarding of 9780 at Roma this morning, up about 1500 on last week. Included were about 2500 cows. A quality yarding penned with heavy feeders, weaners and bullocks.  At the sale’s mid-point, the market was firm to slightly stronger. Grown steers 500-600kg sold to 358c to average 356c/kg. Grown steers +600kg sold to 356c/kg to processors. Full report tomorrow.

Gunnedah sale this morning yarded 3200 mixed cattle, similar to last week. Better quality cattle held firm to dearer in places, but secondary cattle not so much. Heavy feeders sold from 288-415c/kg.   Heavy grown steers to process were dearer selling from 340-394c/kg, while heifers were up 3c/kg selling to 370c/kg. Heavy score three and four cows were 4-8c/kg better, selling from 250-358c/kg.

Wagga sale yesterday  yarded 2870, similar to last week. The market was robust and showed strength for a particular breed across all weight categories. Heavy steers and bullocks suitable for processors showed strong demand, with prices rising by up to 25c, selling from 382-428c/kg. Bullocks 600kg plus topped out at 435c/kg. Well-shaped heavy heifers averaged a solid 393c/kg, further contributing to the positive market. The cow sale saw an increase in buyer participation, which positively impacted prices. Heavy cows gained 9c, averaging 362c/kg. However, the market for leaner cows under 520kg was more erratic, with prices fluctuating from 230-356c/kg.

Limited numbers at Wodonga sale yesterday saw cows again making up a fair portion of the 550 head offering. Prices across trade and export classes were distorted due to insufficient numbers in all classes. On the export front, well-bred steers 500-600kg were primarily purchased by feedlots, with prices ranging from 430-474c/kg. Heavy steers and bullocks suitable for processors sold from 377-428c/kg. In the cow sale, heavy descriptions were in limited numbers,resulting in prices lifting 6c/kg. The bulk made from 352-377c/kg. Heavy dairy cows sold to intense bidding reaching a top price of 360c/kg. Leaner cows sold from 270-346c/kg.