UNDER pressure from softening export meat markets due to tariff and trade flow pressures, northern direct consignment slaughter cattle grids have continued to decline in value this week.

Competitive Queensland grids appear to have lost another 20c/kg compared with this time last week. That’s on top of 20-30c/kg drops in offers a week earlier, marking a significant shift in market direction.

Part of that can be explained by this graph, showing how imported manufacturing beef prices in the US have headed south over the past month. Australian 90s have declined from close to US390c/lb six or seven weeks ago to around 370c/lb this week. Part of that is due to Australia’s quota to China being filled, pushing product in different directions. While the NLRS weekly US imported trimmings market quote is now close to a month out of date, the graph published above plotting US imported trimmings in USc/lb terms adequately illustrates the trend. However the Aussie dollar has shown a softer trend over the past weeks, falling from above US70c to 68.8c over the past fortnight..

Brazil is heading the same way, expected to hit 80pc of its enormous China quota in coming days. Once Brazil’s China quota is filled, its anticipated that more cheap Brazilian product will flood into the US market, putting serious pressure on prices for all trimmings. More on that in an upcoming summary from analyst Richard Koch.

The result of all this is another reduction in slaughter cattle grid prices in Queensland this week.

Export processors in the state’s southern region are this morning offering 710c/kg on good heavy slaughter cows, and four-tooth grass ox 790-800c (800c/kg available on some lower grids for no HGP).

Central Queensland sheds are showing 20c/kg less than those rates.

With financial year closing at midnight tonight, it’s widely anticipated that there will be a burst of bookings now for kills weeks two to four in July, as tax management considerations clear.

Southern states over the hooks grids are mostly unchanged this week, as typical mid-winter availability issues make it harder for processors to adjust rates without compromising supply further.

Good quality cows for kills in eastern parts of South Australia this week are around 820c/kg, and 840c on Angus MSA-eligible. Other processors in the same region have not changed offers for several weeks, but indicated this morning that that might not last. Current offers include 780-800c/kg on heavy cows and 870-880c on heavy grass ox.

Some southern NSW plants with substantial grainfed kills as a ‘core’ are not quoting this week for grass cattle.

Saleyards channel

Pre-financial year tax considerations curbed numbers at some selling centres this week.

Gunnedah yarded only 950 this morning, down another 140 on last week.

Dalby sale tomorrow (new financial year, 1 July) is offering 4500, with the promise of more next week, agents say.

Gunnedah’s yarding was fair quality, predominately yearling and weaner cattle with some larger runs of good quality cattle on offer. Prime cattle were limited with most major buyers present for a solid market.

Prime yearling cattle made from 455-520c/kg. Yearling steers to feed made from 530-626c and averaged 580c/kg while the heifers made from 466-580c. Prime grown cattle topped at 440c/kg. Cows held mostly firm. Score 2 cows to the processor made from 328-380c/kg; score 3s 385-390c and the prime heavy cows from 390-408c/kg.