Export feeder steer prices have firmed slightly in recent weeks, as the trade sails into a quieter period with supply and demand in relative balance following a busier first half of 2024.

Troy Setter

“There are no desperate sellers and no desperate buyers,” is how Consolidated Pastoral Company CEO Troy Setter summed up the current state of play in northern live export markets to Beef Central this week.

Indonesian feedlots are well supplied with cattle following the big volumes shipped earlier this year.

An estimated 150,000 cattle are now on feed in Indonesia, more than there has been in August for some years.

That it not to say the trade has stalled, with the northern mustering season in full swing and export shipments still operating at solid volumes.

Reflecting the level of trade still underway, Lennart Ephraim from Vroon’s Livestock Express reported on social media on the weekend that the company had seven ships load in seven days in Darwin last week:

But with inflationary pressures and cost of living impacts in Indonesia, markets have slowed up somewhat with cattle sales and importers are said to be feeling more cautious, leading to a handful of livestock vessels heading away from South East Asia to serve other markets.

At the same time, few producers would be under seasonal pressure to sell, with wet conditions delaying the start of this year’s northern mustering season, and some NT stations still yet to complete their first-round musters, even though August is almost over.

Mr Setter said there was still water from the wet season lying across roads and through paddocks on some of CPC’s northern properties.

“Demand has been a bit softer, particularly for heifers and some producers are holding and adding weight to cattle or rejoining them, so there is not as many moving.”

“The wedding season and parties (in Indonesia) starts again in October.

“August/September are usually pretty quiet, so there is not a lot of cattle going out of the feedlots, which means there is probably not as much demand for cattle to come in.”

Feeder steer prices ex Darwin have risen slightly from 300c/kg to 305c/kg for cattle going onto ships this week.

Heifers are also much cheaper on the current market. Generally trading at a 20c discount to steers in the NT, heifers are now closer to 40c/kg lower than steers with going rates at around 250-260c/kg.

Mr Setter said the Queensland market was stronger, and starting to see a return of backgrounders and growers in the market.

“I think the numbers for live export in Queensland are probably less than usual at this time of year, because there has been a lot of heavier cattle go onto ships and into abattoirs and the Victorian abattoirs are buying up into the Northern Territory and up into North Queensland.

“The southern buyers are buying predominantly cows, and that takes numbers away from live export and the kill for Townsville and Rocky and even Brisbane and Northern NSW, and it will put a bit more pressure on the grass finished bullocks over time.”