FEEDER cattle prices are facing some downward pressure as numbers start to come forward in the south and the north waits for some early rain.

Wonga Plains Feedlot.

Buyers who spoke to Beef Central this morning were quoting 400kg+ flatback feeder steers on the Darling Downs between 505-520c/kg – which is down about 10c on the last feeder cattle market report.

Most yards are still operating on a 100-day forward contract for January, which is mostly 875c/kg carcase weight, with reports some offers have been put out for 880c/kg.

Angus steers in the north are ranging between 540-560c/kg – which is about steady.

Angus prices in the south are a different story, with grids dropping about 20c to range between 530-540c/kg. One major southern lotfeeder said it was considering lowering its offer to 520c/kg.

Where are the northern cattle?

Some feedlot buyers said they were perplexed as to why a rush of cattle was not starting to come out of the north.

Numbers have been coming forward but not as big as some expected. 7900 head is on the draw for Roma tomorrow, after a bit over 5000 head last week.

Conditions have been drying out in Central and Western Queensland and finding heavy feeder steers has been tough. More lighter cattle have evidently been entering feedlots as a result.

One producer said he felt there was still quite a bit of confidence in these areas, with a big body of feed still on the ground, albeit dry. He said he was expecting cattle flow to remain steady until Christmas and ramp up early next year if does not rain.

However, he did say a heat wave or two might put a dint in the that confidence.

Feeding lighter cattle adds up

Most of the bigger lotfeeders said they were not necessarily chasing lighter cattle or compensatory gain opportunities, but with cattle prices/kg still being high there is a benefit to feeding lighter cattle.

One smaller lotfeeder and backgrounder said purchasing a lighter feeder steer at 520c/kg and feeding it for an 875c/kg forward contract in January was working.

Rain continues in the south as numbers come forward

Finding cattle has not been as much of an issue in the south, with some yards saying they have had periods over the past fortnight where they were not issuing any quotes. This is a seasonal trend, with bigger numbers of feeder cattle often coming through at this time of the year.

Most of the area has a had a good grass growing season, with constant storms passing through every couple of weeks. This week looks the same with rain expected to come through South Australia, Victoria and New South Wales.

The eight day forecast from September 28.

Patchy rain the New England

Patchy rain has come through one of the drier areas of the country over the week, with some properties in Northern NSW receiving up to 25mm. This has evidently slowed some feeder cattle supply.

More rain is on the forecast for the New England this week, although it looks like the totals will be fairly small if it materialises.

Saleyard reports covered in red

In keeping with what buyers have told Beef Central this morning, Meat & Livestock Australia’s saleyard-based feeder steer indicator took a significant drop last week. It went down 17c to 493c/kg. The 400kg+ end of the indicator was down 14c to 508c/kg.

The Eastern Young Cattle Indicator also took a big drop last week, falling 37c to 918c/kg carcase weight.

Interestingly, Wagga and Dalby were the biggest contributors to both indicators.

AuctionsPlus had a similar trend with heavy feeders +400kg cleared only 42pc of the offering of 1286, with prices back 32c on last week to average 524c. (see today’s separate report)