THIS week’s serious blast of hot weather has sparked a load of direct consignment slaughter cattle bookings for some processors, as producers become more wary of shifting cattle heading deeper into summer.
Centres like Longreach, Blackall and Mt Isa saw the mercury hit 41C or higher yesterday, with today’s maximums forecast by BOM (see map below) hitting +39C across most of the northern half of Australia (burnt orange on the map), with intense patches around southwestern and central western Queensland and western NSW hitting +42C (bright orange) and in extremes +45C (maroon). In NSW, Bourke, Tibooburra and Cobar are facing 42-44C today.
The conditions have created some logistical challenges this week in Queensland and western NSW, with Queensland cattle train freight services cancelled due to the risks of buckled tracks, pushing more western stock back onto the road system.
Some Queensland processors have reported a lift in late October bookings in response, especially from inside country closer to the coast. Some operators are now reasonably heavily booked out to the second or third week in November. Some large consignments of late season channel country ox have been reported, making some substantial money – in one case reported to be as much as 800-820c/kg.
In Queensland, competitive export processor direct consignment grids are mostly unchanged this week, after some 10c/kg downwards adjustments a week or two earlier to align prices with competitors.
Plants in southern Queensland this week have offers of 690c/kg on heavy cows and 760c with a HGP (some offers 770c/kg no HGP).
Central Queensland plants are 20c/kg behind those rates.
“The weather is definitely bringing numbers forward,” a Queensland supply chain contact told Beef Central this morning.
In southern states, local supply has continued to gain some traction this week, partly driven by dry conditions. It pushed some grids in southern NSW and eastern parts of South Australia another 20c/kg lower last week, but most offers are unchanged this week, with quotes seen this morning of 810c/kg on four-tooth grass ox and 740c/kg on good heavy cows, as supply has shifted gear.
Most producers looking to take advantage of August/September high prices for slaughter cows have now made their move, and numbers appear to be in decline.
While southern processors are still sourcing some supplies out of Queensland and further north, they are not as active as they were two or three months earlier, with southern kills in decline.
Weekly production
Rates of national slaughter reported by NLRS continue to gradually ease since their high-point seen back in August, with last week’s tally (week ending 10 October) down to 134,650 head. Public holidays and footie finals inevitably had some impact, with the first Monday after grand final day notoriously affected by processing staff absenteeism.
With the decline in reliance on Queensland cattle to supplement their kills, NSW and Victorian processing activity has been most badly affected, with weekly kills being back 5-10pc from rate seen only a month or six weeks ago.
Unlike the two previous years 2024 and 2023 when national slaughter continued to build as the year progressed, with the last quarter by far the busiest, this year looks like the best of the weekly production cycle is already behind us.
Saleyards
In the saleyards system, numbers have tended to retract a little this week due to the hot weather.
Gunnedah sale this morning dropped by 1100 on last week to yard 2700, due to both temperatures and the approaching harvest. Price trends were described as ‘varied’. Feeders +480kg were down 32c/kg selling to 420c/kg, while grown steers to process lifted 27c/kg selling from 390-447c/kg. Grown heifers +540kg were 8c/kg dearer selling from 390-440c/kg, while heavy cows were 9c/kg cheaper selling from 332-400c/kg.
Wodonga sale this morning yarded only 1000 head with the quality of the yarding described as only fair to good. Demand fluctuated around quality and breed with only limited numbers of stock in each category. Feeder steers in the medium weight category were mixed, selling from 412-462c/kg. On the export side, heavy steers and bullocks suitable for processors lifted in numbers this week and quality improved, selling from 405-470c/kg. In the cow sale, heavy cows were well supplied, the bulk making from 366-402c, with prices firm to a few cents cheaper. Leaner cows less than 520kg were very mixed selling from 322-379c/kg.
The Forbes sale yesterday saw numbers halved to 1584 head, with the market regaining some of the previous week’s losses. Heavy steers and bullocks were limited and reached 468c/kg. Grown heifers topped at 448c/kg. Cows were 4 to 6c better with heavy score 2s making from 300-378c and score 3s 371-391c.
Mortlake sale yesterday sale numbers back by 500 head to 1095. The market was softer by 10-15c/kg for bullocks, grown steers and trade cattle. Most heavy beef cows remained firm however the light to medium weights and some dairy cows gained 10-15c/kg in places. Bullocks sold to a top of 440c/kg. Better quality trade cattle ranged from 440 to 510 c/kg. Heavy beef cows made from 360-420c/kg while medium weights sold from 340-392c/kg. Manufacturing steers reached 418c/kg. Grown heifers ranged from 370 to 440c/kg and grown steers sold to a top of 450c/kg.
Warwick sale yarded only 1100 this morning. Bullocks eased in price however plain cows sold to dearer trends with good heavy cows similar to last week’s sale. Bullocks sold to 440c and averaged 423c/kg. Grown heifers to processors made 429c to average 401c. Score 2 heavy cows averaged 332c/kg, while good heavy cows topped at 396c to average 373c/kg.
Roma sale this morning yarded less than 6000 head, with a preliminary report (full details tomorrow) quoting the market firm, with heavier feeders slightly easier. Grown steers 400- 500kg maintained levels of last sale and sold to 404c/kg, grown steers 500-600kg averaged 415c/kg and bullocks + 600kg averaged 417c.