File image cattle feeding at Paringa Feedlot in Central Queensland.
Supply disruptions caused by last week’s rain have helped to drive feeder cattle prices across Queensland and New South Wales 10-20c/kg higher, but another factor has also pushed EU-eligible steers even higher.
Feedlot buyers contacted by Beef Central this morning said 400kg plus flatback steers are currently trading for around 370-375c/kg in paddock sales on the Darling Downs, based on grids released late last week.
Some feedlots have been paying above that for the same article in saleyards to fill gaps, with tops at Dalby last Wednesday for example selling up to 394c/kg.
The premium for Angus cattle over flatbacks remains at around 50c/kg according to sources Beef Central spoke with this morning, but EU cattle are reported to be trading higher again.
One NSW lotfeeder said EU compliant cattle were trading at a 10c premium to other Angus feeders due to the looming deforestation regulations coming into effect later this year.
The deforestation import rules are due to start on December 30, which means they will be in force after a 180-day feeding period.
Alongside the usual EU accreditation, the deforestation-free cattle will need to come with GPS coordinates that do not trigger the “deforestation” thresholds.
The particular feedlot was quoting Angus steers above 350kg between $4.10 and $4.20kg and EU compliant steers between $4.20 and $4.30.
Source: MLA NLRS. Click on image to enlarge
At the time of publishing Beef Central’s daily news email today (click here to subscribe for free), MLA’s overall National Feeder Steer indicator (which is averaged across all saleyards and all breeds within the feeder liveweight and muscle/fat score specification) stood at 370c/kg, up by 12c/kg on a week ago.
The national 400kg feeder steer indicator was 380c/kg, 16c higher than one week ago.
State by State, the Queensland 400kg+ feeder steer indicator price was 27c/kg higher 375.6c/kg; NSW 6c higher at 380c and Victoria 10c lower at 334c.
The current price for feeder steers bought online is at an 18 month high, with the last time 400kg + steers averaged above $1800 in the second week of February in 2023. The latest AuctionsPlus report highlighted a line of 50 Angus mediumweight feeder steers 356kg at 10-12 months out of Nyngan, Central Western NSW, which made 423.7c/kg or $1510 a head on Friday.
Feedlot buyers contacted on Monday attributed the rises mainly to disruptions caused to supply by last week’s rain which stretched from Central Queensland to southern NSW.
The upward pressure on cow prices as Victorian processors compete in Queensland was also influencing feeder and store markets.
The reason the feeder market had not “gone as hard” as the cow market was the grain price, one southern Queensland feedlot buyer observed.
“Rations are still dear, costs of gain are still very expensive and dearer than the cattle are worth,” he said.
“That is why the feeder market hasn’t kicked at the same rate as the cow market, and probably that is going to continue at least until the new crop.”
Feedlot space is also reported to be largely full, with pens mostly being filled by regular suppliers.
People looking to feed cattle opportunistically are having difficulty finding available space.
Feeder cattle supply is said to be at least adequate at present, with western and northern spelling yards handling large numbers of crossbred cattle with little to no humps being targeted at feedlots.
The current time of year is considered the optimal time for feeding cattle with cool days and cool nights keeping body temperatures low and weight gain performance at an annual high.