SLAUGHTER cow prices continue to be buoyed by vigorous international demand for Australian lean trimmings and manufacturing beef, driven in part by the vacuum now being left by dramatically lower US cow kills.

Imported lean grinding beef prices into the US continue to hover close to all time records when measured in A$, reported on Friday at A$10.52/kg. Recent rises in currency value have taken a little of the edge off the recent trend, with the A$ trading yesterday at US63.6c, close to its highest level since mid-December. Despite that, current price levels have never been seen before.

Both saleyards and direct-to-processor consignment channels are reflecting the continued strong processor demand.

A large NSW export processor has over-the-hooks offers of 610c/kg for Angus heavy slaughter cows this week.

Competitive export processors in southern Queensland have raised their grids another 10-20c/kg on both cows and grass steers over the past seven days. Some of those changes were to align with offers from competitors who had moved earlier.

Best offers seen from large Queensland operators this morning have heavy cows 580c/kg (560c this time last week), and heavy grass four-tooth steer on 640-650c/kg (630c last week.) Some operators have 10c/kg more for steer with no HGP.

Central Queensland plants are typically 10c/kg behind those rates.

These price rises come despite the fact that a number of Queensland plants are now two to three weeks forward on priced bookings, with slots opening up for weeks commencing 10  and 17 March.

Apart from the underlying strength in the export grinding beef market, there’s two other factors in play in the latest Queensland price rises.

The first is some weather disruptions in parts of Central and North Queensland that’s slowed supply, and perhaps held a few cattle back.

The second was a widening gap in cow prices between southern states and Queensland (see last week’s kill report). The cynics amongst us might see the latest price lifts described above as providing a deterrent to southern processors eye-ing off Queensland slaughter cattle to send south for processing.

A 20c/kg kick in Queensland cow prices takes some of that incentive away, but despite that, a number of Victorian and southern NSW operators are circulating in the Queensland market at present. At least one evidently has paddock offers out at prices better than 600c/kg on cows, but we haven’t been able to confirm that, or any business conducted. If its true, it would land those cows home at a price around 620-630c/kg.

Will the latest rises in Queensland be enough to keep southern operators at bay? It depends largely on the state of supply at home, where numbers are looking increasingly tight.

In southern states, some direct consignment price rises are also evident this week.

Southern NSW grids this morning have cow grids offering 590c/kg and grass steers 670c (unchanged on last week), while eastern regions of South Australia have offers this week of 620c/kg on cows and 670c/kg on four-tooth grass ox, both up 10c.

Prices quoted above are now approaching the boom period rates seen back in 2022, when cattle were particularly scarce after the 2019-20 drought.

There’s also been some big money paid for cows in Eastern Australian saleyards yesterday and this morning (see summary at the base of this page).

Wagga sale yesterday was a good example. Heavy cows jumped 26c/kg on average, with prices from 320c to 348c/kg. Lighter descriptions sub-520kg jumped a further 10c halfway through the sale with prices topping at 332c/kg. The best of those heavy cow prices would equate to an eye-watering 655-660c/kg on the hook, at a better cow yield of 52.5pc, plus 20-25c freight back to the plant in eastern South Australia.

Slaughter rates struggling to advance

For the year to date, rates of weekly slaughter are yet to exceed 145,000 head – roughly where they were during the back part of 2024 – suggesting processor manning levels remain a significant obstacle to larger kills this year.

Extra Saturday shifts have largely been ruled-out for the time being by one large operator, who fears that an extra Saturday shift carrying an overtime penalty simply means greater absenteeism among workers the following Monday, when normal rates apply.

Last year clearly saw production momentum grow as the year advanced, driven mostly by gradual addition of plant personnel and the commissioning of some new processing capacity in some sites. Whether that pattern will follow in 2025 remains to be seen, especially as the industry approaches the traditional peak turnoff period around May.

Last week’s national weekly slaughter reached 144,242 head, down about a thousand head or 1pc on the previous week, but still 12.4pc higher than this time last year. The female slaughter ratio reached 47.6pc, almost exactly at the tipping point between herd expansion and contraction.

Dry to very dry areas are now evident in most eastern states, with a noticeable wedge of lightly conditioned young cattle listed on AuctionsPlus on Friday out of the Quilpie, Windorah, Eulo, Cunnamulla and Charleville country in western Queensland telling a story.

Producers this year appear determined to move early, if they sense the season closing in, rather than wait too long.

Saleyards channel shows sharp rises

There was a generally strong price trend in physical sales held yesterday and this morning, headlined by cows.

Wagga sale yesterday yarded more than 6600, up about 1600 or 25pc on the previous sale, influenced by prevailing dry conditions that are impacting many producers. Despite these challenges, the market showed strong sales over steer categories. Cows emerged as the standout performers this week. As the sale progressed, prices for cows saw a steady lift, reflecting strong buyer interest. Light weight categories rose significantly as the sale progressed.  A large turnout of buyers at the sale contributed to the competitive market. Heavy steers have emerged as one of the standout categories, witnessing a rise of 11c/kg, part of a broader trend indicating a growing demand for premium livestock as supplies shrink. Bullocks also experienced strong competition, maintaining their pricing, with sales ranging from 338-394c. Particularly noteworthy was the surge in heavy cow prices, jumping 26c, with prices from 320-348c/kg. In a surprising twist cows under 520kg jumped a further 10c halfway through the sale with sales topping at 332c/kg for a particular breed. The bulk selling from 240c to 330c/kg.

Wodonga yarded 2400 this morning, double last week’s offering. Almost half the offering was cows. Domestic and export buyers made their presence felt on all cattle that were well finished. In the export market  competition was solid. Heavy steers averaged 349c/kg, bullocks sold to a larger group of buyers to average 372c. A large offering of cows met the usual field of buyers and price trends were mixed. Heavy cows traded from 318-349c/kg improving 2c, while the leaner heavy cows slipped 13c to average 302c. The market was weaker market for leaner grades under 520kg. D3 cows sold from 255c to 300c/kg.

A preliminary Roma report (full details tomorrow) reported a yarding of 7468 head, with the market dearer, especially for heifers and cows. Grown steers 400-500kg made to 386c/kg, with steers 500-600kg selling mainly from 300-366c/kg to processors. Bullocks over 600kg also sold from 300-348c. About 1500 cows were penned, selling to a stronger market. Score 2s 400 to 520kg made from 190-270c, with score 3s +520kg topped 316c and selling from 268c.