PRICES for heavy feeder cattle have started to soften in Southern Australia as numbers start to come forward after a tough season.

Most feedlots would now be through the processor Christmas shutdown period, with 100-day cattle starting their program this week scheduled for delivery to grainfed processors in weeks commencing 13 or 20 January. Plenty of cattle are currently on feed, with many feedlots sayin they are not taking delivery of feeders until November.

One multi-site lotfeeder told Beef Central that quotes in the south were cheaper than the north for the first time in many months. He said 400kg plus flatback feeder steers were being quoted at 345c/kg in the south, as opposed to 350-355c in Queensland.

Saleyard prices are showing a similar trend, with Meat & Livestock Australia’s statistics showing Qld 400kg plus feeders opening this week at 354c/kg, NSW 353c, Victoria 335c and South Australia 339c (those figures include all breed types – Angus included). Heavy feeders in Western Australia are in-between at 344c.

Qld direct consignment paddock quotes on feeders have stayed firm over the past fortnight, with feedlot buyers quoting between 350c-355c/kg – saleyard prices are also similar. Angus feeders are back 10-20c on earlier rates to about 380c/kg.

In online sales, the overall market for 400kg plus feeders lost 26c/kg on AuctionsPlus on Friday, averaging 360c. That includes all descriptions, from straight Angus to flatbacks.

Wagga Wagga-based Nutrien agent Mark Barton told Beef Central that supply was driving the current market, with heavy feeders starting to come forward.

“I think numbers of heavy feeders are higher than people realise,” Mr Barton said.

“It is normal to have lots of cattle at this time of the year and feedlots are starting to back up a little bit. It is not uncommon for them to be booked up for two-to-three weeks at the moment.”

Mr Barton said frost-damaged crops in the past month were starting to play into the cattle market, with several failed crops being cut for hay and some mixed farmers putting cattle on damaged cereal crops.

He said plenty of areas of Southern NSW and Victoria were still looking for rain, which was on the forecast this week.

“If we get rain this week, we should have weight gains until the end of next month,” he said.

Mr Barton said many were waiting to see if cheaper downgraded grain might find its way into feedlots.

Early sales reflecting north/south trend

Early physical sales this week have reflected the stronger market in the north.

Heavy feeders at Tamworth this morning sold to a cheaper trend on the past week, averaging 355c/kg.

However, the Tamworth market was still about 10c dearer than heavy feeder steers at Wagga Wagga, which averaged 345c/kg – down from 372c the previous week. Feeder steers at Forbes this morning were also considerably cheaper, going from anywhere between 302c to 365c according the National Livestock Reporting Service.