Lotfeeding

Feeder cattle market: Grids drop 20c with weather on watch

Eric Barker 03/02/2025

JBS, Beef City, Purrawunda QLD

FEEDER cattle prices have softened again this week, with a large supply of cattle in recent weeks filling forward contracts and pushing grids down about 20c in the past fortnight.

Weather is a dominant factor with monsoonal rain building in the north and dams starting to dry out in the south.

Darling Downs feedlot buyers who spoke to Beef Central this morning were quoting between 370c-380c/kg for 400kg+ flatback feeder steers out of the paddock (see last week’s story for a description of flatbacks), with Angus feeders making 390-400c/kg.

Southern markets are cheaper, with Angus feeder steers making 375c/kg. Many feedlots in the south are dealing with a significant supply of cattle, with some issuing no quote.

Forward contracts for 100-day cattle delivered to processors in May have been quoted between 690-700c/kg carcase weight, with those contracts evidently filled shortly after they were released. Further demonstrating the high supply of cattle coming to feedlots was a 33pc clearance rate for feeder steers on Auctions Plus last week, where average prices lifted 6c/kg.

Meat & Livestock Australia’s saleyard-based Feeder Steer Indicator dropped 40c since the start of January. It is based on saleyards across the country and does not delineate between types of cattle.

Significant numbers of cattle have been flowing into Queensland saleyards, with 8000 head last week and 11,000 the week before at the country’s biggest selling centre in Roma. The draw for tomorrow’s Roma sale is showing a considerable reduction in numbers to 4500 head.

While the drying out conditions in Western Qld and parts of New South Wales have been attributed to the recent sell-off, many are watching the development of the tropical low in North Queensland that has drenched towns and cities on the east coast in recent days.

According to Bureau of Meteorology’s eight-day forecast, the system is expected to bring significant falls across the north – which could potentially slow the flow of cattle in dry parts of Central West Qld. 30-50mm has already fallen in the Winton area.

The Bureau of Meteorology is expecting significant rain across the north in the coming week as a tropical low moves west.

The season in the south is a different story, with concerns about dams drying up in parts of Victoria pushing cattle into feedlots.

Feeder steer prices softened considerably at today’s Wagga cattle sale, with 400kg+ steers averaging 331c/kg. One feedlot buyer told Beef Central that some Darling Downs feedlots were able to land cattle in Qld for 365c/kg, including freight.

The StoneX Australian Cattle Swap forward curve, which shows the mid point between bid put on by potential buyers and offers by potential sellers.

Forward pricing with the StoneX swaps tool is also showing a softening in the coming months before a possible strengthening in the second half of the year. Contracts have been signed with StoneX for delivery in June and July at 360c/kg.

While feeder steer prices have largely soften the northern feeder steer export market has gained strength in recent weeks, with prices for feeder steers ex Darwin to Indonesia being quoted at $3.55-$3.60c/kg liveweight, and heavier cattle from Queensland landing in Darwin for $3.60c/kg. With Lebaran in Indonesia only a few months away heavier steers are in demand to ensure the market will have adequate supplies of market-weight cattle on hand for the peak demand month.

The higher pricing is being largely driven by a lack of heavy feeder cattle in NT which is forcing buyers to compete against Queensland feedlots to get heavier cattle back to Darwin.

With rain in the NT there has also been less cattle available for ships looking to fill orders which is adding upward pressure to prices.

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Comments

  1. warren hunter, 04/02/2025

    Hi Eric
    This seems to be a repeat of last year with most Queensland plants starting off with rates well below market value. While 90 CL beef prices have improved further in 2025 and past the AU $10/kg, it is disappointing to see cow prices dropping again.
    This has to stop.

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