FEEDER cattle grids have continued to drop this week as supply increases and pressure mounts from processors selling into a tough meat market.

Feeders being shifted at Vandyke feedlot

While prices are slipping, rain continues to fall in the south with another system on the forecast for most of South Australia, Victoria and the Riverina area of New South Wales. That would follow up falls in the same area over the past fortnight.

Buyers who spoke to Beef Central this morning were quoting 400kg+ flatback feeder steers on the Darling Downs between 490-510c/kg – a drop of 20-30c on the past fortnight. One buyer quoting 500c/kg said he thought his grid might have been revised down later today.

Angus prices have continued to drop this week after reaching 600c/kg at the start of last month. Grids are down about 10c on the last feeder market update, ranging between 540-560c/kg in the north and 550-560c/kg in the south.

Finished cattle demand slows

There is pressure on the processing end of the feeder market, with China and Korea still largely out of the play.

While the November forward contracts for 100-day grainfed cattle in Southern Qld were high at 900c/kg carcase weight, there was an expectation the December contract would come down to somewhere between 860-880c – depending on the area.

The December forward contract also weighs on demand as it has to factor processors taking a break over the Christmas period.

China may come back into consideration with those grids as cattle processed in December reach China when the tariff-free quota opens again in January.

More rain is on the eight day froecast this week.

Supply coming forward across the eastern seaboard

Most buyers who spoke to Beef Central this morning said they were booked forward for a few weeks.

Cattle are continuing to move from the north as cold and windy weather comes across and slows growth. Saleyard throughput has slowed in the past fortnight, Roma has 4100 head on the draw for tomorrow after 7900 the week before.

Southern feedlots are also booked forward as the Spring flush has come early with a lot of cattle getting to weight before expected.

Prices drop at the saleyards

The saleyard-based feeder steer indicator saw a 27c drop on the start of last week, opening this week at 484c/kg. The heavy 400kg+ side of that indicator had a 24c drop 487c/kg.

This morning’s Wagga cattle sale had a 200 head increase in heavy feeder steer numbers, with prices holding steady at 523c/kg.

National Livestock Reporting Service Dubbo reporter David Monk said feeder steers and heifers were up to 25c dearer last Thursday with the feeder steers selling from 445c to 570c/kg. Feeder heifers sold from 448c to 528c/kg.

Central New South Wales saleyards have been considerably dearer than the Southern Qld yards in their contributions to the indicator, with Dubbo and Gunnedah contributing the highest prices.

However, it is always worth pointing out these reports do not distinguish between the Angus and crossbred markets.