SOUTHERN lotfeeders are continuing to put pressure on the feeder market as buyers become less picky and Angus steers lose their clear 100c premium.

Wonga Plains Feedlot.

While many are still hoping for more rain in the south, a general wet season has added plenty of demand for feeder cattle. Grass finishers have been in competition with feedlots and southern buyers are still busy in the north trying to fill pens.

Queensland feedlot buyers who spoke to Beef Central this morning were quoting 400kg+ flatback feeder steers between 460-470c/kg, with Angus feeders steers between 520-540c/kg. Some flatback quotes for saleyard cattle have been quoted between 490-500c/kg and a British cross (no indicus) quote was given for 500c/kg.

Very few cattle in south are going for less than 500c/kg, with one buyer telling Beef Central that he had seen quotes for British X cattle between 520-550c/kg and Angus steers as high 570c/kg.

“Anybody putting a few cattle on feed would have to have a good relationship with their bank manager at the moment,” he said.

One large southern lotfeeder is holding its crossbred prices firm on the past fortnight at 480c/kg.

Numbers are continuing the flow in Northern saleyards, with Roma yarding 11,000 head last week and Dalby yarding 6400. Those yards have been selling large numbers for two months now and Roma has another 8000 on the draw for tomorrow.

Beef Central has heard significant numbers of Angus cattle from the New England region have been heading into feedlots in recent weeks after a good winter.

Anticipation for forward contracts

The feeder market is in somewhat of a holding pattern at the moment, with most yards in their Christmas shutdown period – where cattle procurement slows to account for processors shutting for Christmas in 100-days’ time.

Many lotfeeders on the Darling Downs are waiting for the release of the January 100-day forward contract later this week, with several buyers telling Beef Central that 800c/kg carcase weight was necessary to sustain current flatback prices. That would be a lift from the 770c/kg for the December contract.

One southern buyer said forward contracts in that area were strong, with domestic contracts well above 900c/kg.

Strong market for feeder heifers

The heavy demand for cattle in the south has turned some yards towards feeder heifers, with one agent telling Beef Central he has seen some paddock prices for Angus heifers above 500c/kg. Another agent said heifers were making 470c in the south and 450c in the north.

Today’s Wagga cattle sale saw feeder heifers increase by 32c to average 493c/kg – while medium and light feeder steer categories dropped in price.

Meat & Livestock Australia recently launched a feeder heifer indicator, which has also been reflecting the increase in prices opening this week 7c dearer than last week at 444c/kg.

Optimism for new season grain prices

As Grain Central’s Feedgrain Focus column pointed out, prices for wheat and barley have plummeted ahead of the impending harvest in Queensland.

Many feedlots are hoping some cheaper grain will hit the market soon, improving the cost of equation – which could have a positive impact on cattle prices.

However, the supply of grain is still uncertain with one southern lotfeeder saying that another big storm is needed to get crops through to grain. He said enough rain has already fallen for hay and silage crops.