RECENT widespread and in places beneficial rain has forced direct consignment grid prices sharply higher across Queensland and southern states this week.

Queensland grids started to rise last Thursday in response to lower saleyards yardings and changing attitudes among direct-consignment cattle suppliers.

As can be seen in today’s separate weekly rainfall summary, good falls were received across a wide area in the eastern half of NSW and into eastern Victoria and the southern portion of Queensland. These came on top of useful to valuable falls a week earlier, and the prospect for more rain in places over the next few days.

With the exception of today’s Roma sale, saleyard numbers have mostly contracted sharply this week. Gunnedah sale this morning was back to 2520 – about half the numbers seen only three weeks earlier, while Tamworth yesterday dropped another 1000 on last week.

It’s been quite a since we’ve used the term ‘shortage,’ but that’s the situation many processors find themselves in this week.

With forward bookings secured three to four weeks ahead only a fortnight or three weeks ago, the tables have turned. Some of those commitments may have been space-bookings only, which have now evaporated on the back of rain, leaving some gaping holes to fill.

Central Queensland plants are generally better placed, with good seasonal bookings out to July – that’s not unusual for this time of year.

Grids lift 20c

Best money seen this morning for over-the-hooks kills in southern parts of Queensland in coming was 690c/kg on heavy cows, and 770-780c on four-tooth grass ox – both up 20c.

Central Queensland remains in a relatively better supply position, remaining 20c/kg behind those quotes, with North Queensland 30-40c behind that.

Southern states’ grid offers followed a similar trend, with an additional 20c/kg common among competitive export processors on last week’s money.

Eastern regions of South Australia showed heavy cows 770c/kg to as high as 800c on MSA-eligible cows this morning, +20c on last week, and four-tooth grass ox also +20c on 875c. Angus-eligible yearling steer 0-4 teeth MSA is making up to 900c in some grids in eastern SA this week, and 880c for the coloured equivalent.

Some southern NSW plants with substantial grainfed kills are less exposed to the current supply lull, and have not yet moved their grids, but may make adjustments in coming days.

Southern buyers active in the north

Southern processors have been particularly vigorous in Queensland and northern NSW in the past week, as local supplies nosedive on the back of rain.

Reports out of Clermont sale in Central Queensland this morning flagged southern NSW buyers paying 860-870c/kg dressed weight equivalent for heifers, on the deck, before an additional 50-60c freight is added. That means they could be worth 920-930c/kg landed at home.

“Everybody’s short of cattle and that’s what’s driving the market direction this week. But I don’t know how long this is likely to go, because the meat market at this stage can’t justify it,” one processor contact said this morning.

“It’s been an incredibly mild start to winter in many areas so far, but the arrival of a few frosts might start to push a few more cattle forward,” he said.

If the current cycle continues, its looking increasingly like that some processors – especially those from NSW south – may have to look at winding back daily kills, dropping shifts or for those that have them, bringing forward their annual maintenance closures.

Saleyards trends: Numbers continue to decline

Numbers at Gunnedah continued to contract this morning, reaching 2520 head. The market was mostly dearer, although there was less processor competition from the south. Prime grown steers made to 490c while processor cows were considerably dearer, with score 2s making 250-350c/kg and score 3s 344-392c/kg. Prime heavy cows made from 395-415c/kg.

Tamworth sale yesterday yarded nearly a thousand head less than last week, offering 2326 head. All major buyers were present for an overall much stronger market. Prime grown cattle to the processor were +30c dearer. The steers reached 486c/kg and the heifers topped at 468c/kg. Cows were 30-40c dearer across the board. With score 2s ranging from 270-344c/kg, score 3s from 320-387c and prime heavy cows from 387-425c and averaging 407c/kg.

Roma’s interim report showed a yarding of 8320 good quality cattle this morning, despite the possibility of more showers in and around the supply district. The market considerably stronger mainly for the better lines of backgrounding steers. At the time of this interim report yearling steers 400-480kg sold from 496-512c/kg and steers +480kg made from 450-468c/kg to processors. Grown steers 500-600kg sold to 400c and  steers +600kg to 468c/kg.