More rain is forecast across large parts of the country in the next eight days.NORTHERN flatback feeder steers are now level-pegging or dearer than southern Angus prices as cattle now start to come back to market after widespread rain in Queensland.

Buyers who spoke to Beef Central this morning were quoting 400kg+ flatback feeder steers on the Darling Downs between 560-575c/kg, with Southern Angus prices ranging between 550-570c/kg. Angus prices are dearer in the north, ranging between 570-580c/kg.

Another large northern multi-site lotfeeder was offering only 540c in Queensland on flatbacks this morning, but admitted little business was being written at that rate, with adequate supplies already secured. He said delivery was currently three weeks, but shorter terms could be found for cheaper cattle. Northern Angus price was 580c.

In the south, his company is offering 570c on Angus and 540c on British cross.

The prices are directly reflecting the supply of cattle in each of the areas, with conditions now starting to dry out in Western Victoria and South Australia and feedlots booked to December.

Feedlot buyers in Northern New South Wales and Qld have had to work a bit harder to find cattle, with parts of the area in drought and other parts receiving significant rain in the past fortnight.

Buyers head to the saleyards

That has pushed a lot of buyers into saleyards or onto AuctionsPlus to purchase cattle where some big money has been paid in recent weeks.

Meat & Livestock Australia’s saleyard-based feeder steer indicator has risen 82c in the past month and 6c in the past week to open today at 553c/kg. Average prices from Qld saleyards contributing to the indicator are considerably higher than the south, with Dalby averaging 601c/kg and Wagga averaging 546c/kg.

One southern buyer told Beef Central that if feedlot buyers from the north were not coming down to the Riverina and Northern Victoria to compete for cattle, the Southern Angus price would be below 500c/kg.

MLA’s feeder steer indicator on November 9 shows how prices at northern saleyards like Dalby and Roma are currently dearer than prices at southern yards like Wagga.

Strong outlook for the market

There is a feeling that the market is nearing the top, with a combination of high interest rates, high grain prices and pressure in the meat market eroding feedlot margins.

Forward contracts for 100-day grainfed cattle to be delivered in February are at 900c/kg carcase weight and grainfed Angus forward contracts are at high 900s.

Feedlot buyers have told Beef Central that if northern flatback prices keep rising, there will be serious conversations about keeping some pens empty.

While prices may be nearing the top, there is a feeling that market will stay strong for the foreseeable future as storms continue to hang around. The Bureau of Meteorology’s eight day forecast is tipping rain across Qld, the Northern Territory and parts of the NSW.

At this stage it looks more patchy than the rain of the past fortnight.

Northern supply pressures starting to ease

While supply has been constricted in the north and could be further constricted in the next week, decent numbers of cattle are starting to come to market again. Some cattle purchased before the rain being delivered and producers presumably cashing in on the strong market.

Roma has 8100 on the draw for tomorrow, which is shaping to be its biggest yarding in more than a month.

One buyer from a large Darling Downs feedlot told Beef Central they had picked up cattle from many areas of Qld that missed out on the big rain, like Moranbah, Hughenden, Blackall and McKinlay.

Southern saleyards are also busy, with 9090 head at Dubbo last Thursday and 5800 at Wagga today. With these two yards both busy last week, MLA’s national yarding number being its highest since September.