FEEDER cattle prices have opened the year on a stronger note with paddock quotes for flatback steers now hovering around the 400c mark.
Feedlot buyers contacted by Beef Central this morning were quoting between 390c-400c/kg for 400kg+ flatback feeder steers, with Angus steers ranging between 400c in the south and 410c in the north. Beef Central was also told that some lotfeeders are not offering quotes this week.
This week’s quotes are about 20c/kg higher than December.
The gap between heifer and steer prices appears to be narrowing, with one New South Wales lotfeeder saying heifer prices have increased by 30c to 360c/kg. Similar observations were made in today’s AuctionsPlus report.
A key driver of the rising price has been a good season in Southern Queensland and Northern NSW, allowing many producers to hold cattle while also driving competition from restockers.
However not all areas have benefitted from summer rain, with deteriorating conditions in Queensland’s Central West Qld pushing more cattle from that region onto the market.
MLA’s feeder steer indicator. Click to enlarge.
Mirroring the trend in paddock sales, Meat & Livestock Australia’s saleyard feeder steer indicator opened this week about 15c higher than December at 377c/kg.
Northern sales have been generally stronger than the south, with the price gap between flatback and Angus steers remaining virtually non-existent.
Heavy feeders last week averaged 397c/kg in Queensland, 380c/kg in New South Wales and 337c/kg in Victoria.
Meat & Livestock Australia’s saleyards-based feeder steer indictor last week saw an increase in numbers to 9926, up from 3889.
The market will be put further the test this week with larger numbers coming forward. Roma agents have more than 11,000 cattle booked to sell at tomorrow”s weekly sale.
Offers and bids shown in the StoneX forward pricing curve suggest the market is on track to remain stable in the coming months before softening in the second quarter. In January to March, offers are at 380c, bids are 395c for January and 390c for February and March. The curve then starts to taper off to hover between 350-370c for the second half of the year.