SOME modest increases in quotes in parts of southern Australia are the only real change to be seen in an otherwise stable direct consignment slaughter cattle marketplace this week.

Processor grids in parts of southern NSW and eastern regions of South Australia have lifted on cows another 10c/kg since late last week. That’s in a direct response to the extreme scarcity of local slaughter cattle across the region at present, which has forced many southern processors to seek cattle supply out of Queensland for the past three or four months.

Competitive direct consignment quotes from processors in the eastern regions of South Australia are 610c/kg this week on good boner cows and 660c on four tooth ox – both up another 10c/kg – while southern NSW grids seen this morning have four-tooth ox on 660c/kg (no HGP is mostly quoted in southern states) and good heavy cows, unchanged on 590c/kg.

In the highly concentrated southern Queensland processing region this morning, prices on good heavy cows are currently at 530-550c/kg, with 590-600c/kg available on four-tooth grass ox, with an implant. Some less competitive grids in the region still have grass Jap ox at around 570c. All those numbers are basically unchanged for the past two or three weeks.

Central Queensland plants are currently 10-20c/kg behind those rates, and North Queensland, another 20c behind that.

At those rates, it exposes a huge 60-80c/kg gap in the cow market between parts of southern Australia and southern Queensland, explaining the eagerness among five or six operators out of the south to continue to buy cattle in big numbers out of the north of the continent.

Queensland processors are now considerably better positioned, bookings-wise, than they were only three or four weeks ago before the market lifted. Contacts working with larger multi-site processors said they were now well covered (bookings either fully committed with a price, or a combination of price+space only) until weeks commencing 9 or 16 September.

Slaughter numbers showing slide

Rain across parts of Queensland and NSW last week, together with some Brisbane Show public holiday impact produced a sizeable decline in national and Queensland slaughter for the week ended Friday.

The NLRS weekly kill report issued this morning shows national slaughter last week at 134,023 head, down 4100 or 3pc on the previous week, and continuing a recent downwards trend. Just three weeks ago, kills were still consistently above 140,000 head.

Almost all of last week’s national decline was driven by Queensland, where numbers fell by 6000 head to 65,864 head. Other states showed only small declines, or little change, except for NSW, which was up 1000 head on the previous week to 34,933 – the state’s third highest weekly tally this year.

Victoria’s kill – boosted by large numbers arriving out of areas in the far north – remains unusually high for mid-winter, hovering close to the 2024 season high, accounting for 21,959 head last week.

Apart from a King’s birthday holiday in October for some states, there’s few holiday disruptions now left in the remainder of the 2024 beef processing season, with 17-18 weeks left before many large export sheds close their books for the year.

While numbers of well-finished cattle are now starting to flow out of the New England and Riverina regions, processors are concerned that good finished cattle in numbers will not be seen out of some areas of Victoria, South Australia and southern NSW until will into October, at earliest.

Saleyards

The saleyards channel has seen some smaller offerings this week, pushing prices higher in a number of selling centres.

Wodonga sale this morning yarded only 880 head, down from 1200 last week. Cows were once again highly sought, with demand strong across all classes. The smaller offering of cows encouraged buyers to step up for all weights and grades and prices remained strong throughout. Heavy cows were unchanged to 2c softer selling from 320-348c/kg. Leaner grades made from 216-310c. Heavy steers sold to 312c/kg, with most of the steers 500-600kg selling to lotfeeders. Bullocks sold to a very small group of buyers with prices from 350-360c.

Wagga sale yesterday yarded 3200, down 10pc on last week. The standout of the market was the lack of weight across the offering. Cows were highly sought due to a small offering of 475 head. Well-finished cows traded impressively from 317-350c/kg, with most sales above 335c/kg. Because of the limited supply, leaner grades were elevated in price jumping on average 20c/kg. The majority of D3 cows under 520kg made from 270c to 315c/kg. Heavy steers and bullocks were in limited supply, fetching 348-375c. Heavy heifers with good shape attracted solid competition selling from 310-366c/kg, but not at the price levels of the previous sale.

Tamworth yesterday yarded 1035, down 20 on the previous week. Yearlings and cows made up the bulk of the offering. A limited supply of well finished heavy grown steers sold to a slightly dearer trend with strong export processor competition. This trend carried through into the well finished grown heifers that also saw a quality improvement reflected in price change. The cow market was generally dearer however there was a drop off in the average quality of the penning that saw some negative change in average prices.

A preliminary Roma store sale report (selling still underway at the time this report was filed – full report tomorrow) showed a yarding of 6550, down around 2000 on last week. Cows were yet to sell at the time of the report, but grown steers over 500kg sold to 339c with the over 600kg selling to 328c/kg.