THERE’S little change evident in direct consignment slaughter cattle price offers this week, as the typical mid-winter southern cattle supply lull is counter-balanced by rapidly deteriorating meat export trading conditions.

Imported lean grinding meat prices into the US have fallen about a dollar a kilo over the past four months in A$ terms, sitting just above A$11/kg a week ago, as the full effect of China quota tariff on Australian export beef comes to bear.

Despite declining kills in southern states over the past few weeks, Victorian and southern NSW processors remain active in the Queensland livestock sourcing market this week, especially via saleyards.

Over-the-hooks offers from large multi-site Queensland export processors this week show price variances of up to 20c/kg, reflecting different supply positions. That rarely happens for long, with some adjustments likely to bring competitive offers back into closer alignment. However the current meat trading environment suggests that the higher prices are more likely to retract, than the lower offers are to rise.

Some Queensland processors dropped their slaughter cattle grids by 20c/kg a fortnight ago, while others are yet to follow.

Best offers seen this morning from competitive exporters in the state’s south have heavy slaughter cows on anywhere from 690c to 720c/kg, while four-tooth heavy grass ox is anywhere from 770-800c/kg on some grids).

Central Queensland plants are typically 20c behind those rates.

Best forward contract offers on flatback 100-day grainfed ox for November delivery in Queensland were quoted this morning at 900c/kg.

Southern states show no significant over-the-hooks changes this week, but some operators admit they are now looking hard at the numbers. Best quotes seen in both eastern regions of South Australia and southern NSW were heavy cows 780c/kg and grass four-tooth heavy steer 850c. Some of those quotes were down 20c on three weeks ago.

There was no NLRS slaughter report available for the week ended 17 July by the time this report was filed, but reports continue to suggest that a number of southern operators are shedding days or reducing shifts at present to try to better match available supply, as margins no longer stack up. We’ll add some numbers here when the report arrives.

Saleyards channel

Most selling centres showed smaller offerings early this week.

Gunnedah sale saw numbers drop by 800 to 1300 this morning. Feeder cattle were sought after while most other grades held firm or were slightly cheaper. Prime grown cattle to the processor made from 410c to 454c/kg, with score 2 and 3 cows to the processor firm, making from 369-386c/kg. Prime heavy cows lost 5c to sell from 383-408c/kg.

A preliminary report from Roma this morning showed a yarding of 11,100, down 410 on last week. The yarding was characterised by an increase in lighter weaners and cattle in lighter condition. Yearling steers 330-400kg sold to 610c to lotfeeders and 608c/kg to backgrounders; steers 400-480kg sold from 522-564c/kg to lotfeeders. Grown steers 400-500kg sold from 386-404c/kg to processors, with 500-600kg descriptions from 406-434c/kg to processors. Bullocks over 600kg topped 428c/kg to processors.

Tamworth offered 1440 yesterday, up a handful on last week. There was solid competition on heavy feeder steers as well as prime heavy cattle. Yearling steers to feed +400kg were 30c dearer and more in places to make between 500c and 608c/kg. Feeder steers under 400kg were cheaper and made from 576-586c/kg. Cows held mostly firm across the board, with score 2s making 335-355c/kg and score 3s from 365-392c, with prime heavy cows from 386-408c/kg.

Mortlake offered 1641 yesterday, marginally down. Overall quality was plain and mixed in breeding, with very few supplementary-fed cattle on offer. The bullock offering lacked weight consisting mainly of grown steers and manufacturing types while more than half of the yarding comprised cows. Despite the decline in quality the market held firm across most categories with the majority of cattle purchased by feeder operators. Most cows remained firm. Heavy beef cows sold from 395-434c/kg while medium beef cows made from 355-388c/kg. Bullocks sold to 520c/kg while grown steers reached 514c and crossbred steers to 482c/kg.