FEEDER cattle grids are down across the board this week as frosts kick in and numbers continue to flow out of the north.

Drops in paddock sale feeder grid prices this week have followed a drop in saleyard prices last week. Heavy 400kg+ flatback feeder steers going to feedlots on the Darling Downs were being quoted between 510-540c/kg – which is about a 20c drop on the past fortnight.

Flatness in international meat market trading is also being raised by grainfed livestock managers as a factor in the recent adjustments.

Feeders being shifted at Vandyke feedlot

Angus feeder steer prices have taken a similar hit, with market sources quoting between 560-600c/kg in the south (EU accredited steers at the top of that range). Most quotes were at the bottom of that range, which is about 20-30c cheaper than the past fortnight.

One large multi-site lotfeeder was quoting 560c/kg for Angus steers in the north and there was one southern agent said he had been selling heifers between 520-540c/kg.

Meat & Livestock Australia’s saleyard-based feeder steer indicator dropped 20c last week to 514c/kg and the 400kg+ side of the indicator dropped 17c to 531c/kg.

Downward pressure in the north

Numbers continue to come forward in the north, with more than 11,000 head on the draw for the Roma saleyards tomorrow, which will be the fourth time in a row the yards have penned more than 10,000 head.

Big numbers are said to be moving of the central-west of Queensland, where the cold weather has slowed up the season.

One large Queensland producer told Beef Central that he had some flatback cattle booked in at 540c/kg. But was expecting those prices to drop to somewhere between 520-530c/kg, which he pointed was still good money.

Most feedlots are still on a November forward contract for grain-finished ox, which is currently near record highs at 900c/kg carcase weight. There is an expectation the December contract, which is expected to come out next week, will be less.

The December contract is also shorter than the other months as it has to account for processing plants to shut down over the Christmas period.

Rain on the forecast in the south

One factor that could put upward pressure on prices in the south is a rain system building up for this weekend – across the south-east corner of South Australia, Victoria, Tasmania and Southern NSW.

The system is predicted somewhere towards the end of the Bureau of Meteorology’s eight-day forecast, so it is unclear how much could be on the horizon.

If the rain materialises, it would add to what has reportedly been a great season in the southern states. Several feedlot buyers who spoke to Beef Central this morning said cattle were starting to get to feeder weight early and were coming on the market.

There is a concern about the profitability of paying more than 600c/kg, as grinding meat prices in the US continue to decline and other key markets in Korea and China still out of play.

Those markets will come back into fold in the coming months, which may increase demand for cattle again.