EASTERN States beef processor direct consignment grids are showing little sign of adjustment this week, but pressure is clearly mounting for some downwards movement.

One large multi-site, multi-state processor’s livestock manager said his company was considering its current position, influenced primarily by challenging export meat markets’ impact on margins.

Some grainfed cattle are clearly showing substantial losses at present.

Saleyards channel slaughter cattle pricing remains ahead of direct consignment in Queensland at present (adjusted for costs), influenced primarily by added competitions from processors further south seeking to fill some big holes in their mid-winter kill rosters.

As described in this separate article today, imported lean grinding meat prices into the US have fallen more than a dollar a kilo over the past four months in A$ terms, falling below A$11/kg for the first time since August last year, as the full effect of China quota tariff on Australian export beef comes into play.

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.

Most processors appear to be reasonably current, in terms of over-the-hooks bookings, with the added competition from Victorian processors evidently playing a part in that.

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 and rapidly drying conditions in some areas suggests that the higher prices are more likely to retract, than the lower offers are to rise.

Some market observers had tipped a further softening in direct consignment rates a fortnight ago, but prices have held their ground longer than what some had anticipated. The main reason for that appears to be that there’s still ‘plenty of hooks to put them on.’

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.

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.

Saleyards channel

Some selling centres showed larger offerings early this week, with lighter and younger descriptions dominating offerings and relatively few slaughter types. Some deterioration in seasonal conditions was raised in NLRS reporters’ commentaries.

Gunnedah sale saw numbers ease to 1200 this morning, down 100 on last week, with overall prices quoted as cheaper. It was a mixed quality yarding of predominately yearling and weaner cattle with few pens of prime cattle on offer. Yearling steers to feed were 25c cheaper to make 527-600c/kg to average 567c/kg, while the heifers were 15c cheaper from 520-563c/kg. Prime grown cattle to the processor made from 380-430c/kg. Score 2 cows to the processor made from 250-374c/kg, score 3s were marginally dearer from 371-395c/kg and prime score 4 heavy cows were 5-8c dearer, making 390-427c/kg

A preliminary report from Roma this morning showed a yarding of 10,700, down 352 on last week. The market slightly easier on light weaners and heavier cattle firm to dearer 10-20c/kg. Yearling steers 330-400kg sold to 546c to lotfeeders and 584c/kg to restockers. Yearling steers 400-480kg topped 552c/kg to lotfeeders. Yearling steers +480kg made to 454c/kg to processors. Grown steers 400-500kg sold from 430-470c/kg to lotfeeders, and 500-600kg steers made to 470c/kg to lotfeeders. Bullocks +600kg sold to 470c/kg.

Tamworth offered 1820 head yesterday, up 380 on last week. It was a mixed quality yarding of predominately yearling and weaner cattle, with limited pens of prime cattle on offer. All major buyers attended for steady competition in an overall cheaper market. Yearling steers to feed were 20c cheaper making 520-598c to average 574c/kg while the heifers made from 450-564c and averaged 549c. Prime grown cattle to the processor made 400-454c/kg. Score 2 cows to the processor were 25c cheaper and made 250-347c, score 3s were 5c to 8c cheaper to make 360-382c, and score 4 score heavy cows held firm to make from 385-410c/kg.