IT’S no surprise that last week’s drenching across large parts of Queensland and NSW has delivered monumental logistical headaches for northern processors this week.

Cancellations of slaughter cattle have been common right across Queensland and into northern NSW since Friday, as roads become impassable, rail services cancelled and paddocks too wet to muster.

Several Central and North Queensland plants are already scheduling lost days this week due to logistical problems causing lack of supply, while others across the state and into NSW are battling to fill holes in kill rosters – remaining hopeful (at this point at least) that all kills will go ahead as planned.

Some Queensland plants are still getting over the early March cyclone delays, with one Central Queensland operator spoken to this morning still 4500 in arrears after the previous rain. Those cattle will only be pushed back further now.

Wet weather money about

Some Queensland exporters are pushing out what can only be described as ‘wet weather money’ in grids this week, in a bid to entice producers with access to cattle to put a few decks together.

Others have left grids unchanged at this point, but stressed that options were a ‘day-to-day proposition’ until well into next week, at least.

“At this stage, we’ve been able to plug holes that have emerged, but there’s still a lot of doubtful cattle deliveries out there,” one large multi-site, multi-state processor said this morning.

Apart from Townsville, most Queensland processors are not reliant on far western cattle this early in the season, meaning disruptions from that region are likely to be minor.

Saleyards are often the fallback position when direct consignment becomes challenged due to weather in weeks like this, but weather-forced sale cancellations and very small yardings this week have only intensified export demand, with cows in some centres soaring to 364c/kg liveweight at sales yesterday and this morning (see details below).

While early estimates of stock losses from last week’s rain event have numbers above 100,000 head, most of those are sheep, not cattle. Considerable damage has been caused to exclusion fencing and roads, but the long-term pasture benefit across large swathes of Queensland, northern NSW and the Northern Territory later this year will be colossal.

The most likely scenario now is that people who have received good grass and herbage-growing rain will now try to hold cattle back, to add weight. That could produce some very choppy cattle supply periods over the next seven or eight months in northern supply areas. In Queensland’s far west, more cattle are likely to be finished as grass bullocks to utilise a big body of feed in the channels, but they won’t be seen in numbers by processors until August, September or October.

Grids show mixed response, but market still fluid

Direct consignment grids seen this morning have prices in southern Queensland at 580-590c/kg on heavy cows, and 650c on four-tooth heavy steer – some up 10c from last week.

Central Queensland rates are typically 10-20c behind that, with some up 20c/kg on last week, with North Queensland now 530c on cows.

Big rain in drawing areas in northern NSW, with falls of 120mm on parts of the New England, heavy rain around Bourke, Walgett and Coonamble have also challenged slaughter cattle supply from those regions.

Southern states rates are mostly up 10c this week, with southern NSW grids showing 640c/kg on good cows and 700c on four-tooth ox, no HGP. Eastern regions of South Australia are also at those rates. Both reflect the shortness of cattle supply in the southern region – only exacerbated this week by the weather restricting access to Queensland cattle for shipment south for processing.

Don’t be surprised to see some southern kills reduce in size later this week and next week, as a result.

Production rises to five-year highs, but some catch-up involved

The past fortnight has produced the two highest NLRS weekly kills seen since 2019, but production will be compromised this week due to the impact of last week’s torrential rain in parts of Queensland and NSW.

The week ended Friday saw a national beef kill of almost 147,600, on top of just over 149,000 head the week before – both the largest kills seen since 2019.

That achievement was somewhat inflated, however, because the two previous weeks were badly affected by challenges surrounding Cyclone Alfred in Queensland early last month, leading to some catchup processing occurring.

As per our item yesterday, there’s been a host of saleyards fixtures cancelled early this week due to the weather. They now include Roma, Charters Towers, Blackall, Gracemere, Clermont, Emerald and Gympie. Other Burnett district sales this week are in jeopardy.

Among those sales that have gone ahead, yardings are well back in size.

There’s been an immediate reaction in stock transfer activity as a result of last week’s rain. As mentioned in this separate item published today as part of our popular Top 25 Transporters series, stock transporters are already fielding inquiries about shifting stock out of dry areas of central western NSW further north, where rain has fallen in the past week.

In one example a producer from around Boorowa who hasn’t had any rain is looking to shift up to 60 decks of cattle into the Walgett area in the state’s north in coming weeks.

Cows standout performers in saleyards

Most physical sales held early this week are sharply down in offering size, while prices have trended sharply higher as a result – especially for cows.

Gunnedah sale this morning yarded only 700 head, down about two-thirds on last week, due to widespread rain events through the drawing area, A very good offering of heavy cows stood out, selling to 345c/kg. Light cows also improved significantly in value. Heavy grown heifers to the trade made 330-354c/kg. Score 4 cows 310-345c/kg,  score 3s 264-305c.

Wagga sale yesterday dropped 1300 head to offer 5100. The dynamics of the sale have shifted significantly following a decent autumn break in the northern regions A bigger field of buyers attended, looking to fulfill feedlot and restocker orders that originated from the north. The recent rain  changed the dynamics of buyer demand, resulting in heightened competition for all cattle with cows a standout performer. A major supermarket dominated the market for all well-finished stock. Bullocks gained 8c, with prices from 380-408c/kg. The cow sale saw prcies surge by up to 49c. Heavy cows sold from 322-360c/kg, while the middle run of leaner types commanded prices from 295-328c/kg.

Wodonga sale this morning yarded 1320, similar to last week. Two thirds of the offering was cows. Export cattle were the highlight with cows the standout. Heavy steers averaged 396c/kg, while bullocks sold to a big group of buyers creating plenty of competition, to average 395c/kg. Despite mixed quality, cow prices surged 44-53c/kg, with buyers all vying for a market share. Heavy cows traded from 336-364c, while the D2 and D3 cows less than 520kg made from 260-333c.

Tamworth sale yesterday yarded only 589 head, down 1100 on last week, due to heavy rain events through the drawing area. Processor cows rose considerably and plain store condition cows were sought by processor and paddock buyers alike. Heavy grown steers over 750kg sold to 382c/kg and heavy heifers 330c to 362c/kg. Medium processor cows 207-286c/kg while heavy cows stood out to considerably dearer trends 300-342c/kg.