TWO speeds have emerged in Australia’s feeder cattle market, with prices increasing in the south pushing some lotfeeders towards lighter cattle to fill pens and a steady flow of cattle continuing in the north.

Southern Angus cattle have increased by about 10c in the past fortnight, with quotes between 460-465c/kg for 400kg+ steers. British cross steers (no indicus content) have increased by about 20c to 420c/kg.

Darlings Downs lotfeeders have also lifted their grids by 10c, with quotes on 400kg+ flatback feeder steers ranging between 370-380c/kg.

Angus cattle continue to have about an 80c premium over crossbreds, however, a wide range of quotes have been given. Some yards are offering 420c/kg, with others offering as much as 465c in the south and 460c on the Downs.

Brand program business appears to be driving the big spread on Angus – with most feedlots now hosting an Angus program attached to long-term export supply contracts that need to be filled. Walk-up business continues to emerge out of the United States and China.

Southern saleyards have driven Meat & Livestock Australia’s feeder steer indicator to its highest point this year, opening this week at 397.81c/kg – the feeder steer indicator does not differentiate Angus from crossbreds.

Source: MLA NLRS saleyard indicators Monday 23 June 2025.  

Southern cattle remain in short supply.

After a major sell-off earlier this year, the amount of southern cattle hitting the market has slowed with rain starting to fall in some areas.

One southern feedlot buyer told Beef Central this morning that the southern market was a case of the “needy and the greedy” – the needy being feedlots struggling to find cattle and the greedy being increasing prices for producers.

“If someone asks for a quote and you don’t give a reasonable price, they will go somewhere else at the moment,” he said.

Finding heavy feeders has been issue for some time, with several buyers telling Beef Central that lighter cattle around 300kg have started to make their way into feedlot pens.

There was a slight Cost of Gain advantage in favour of lighter feeder cattle evident in Beef Central’s grainfed trading budget published last week.

Dave Benson, director of Ray White Rural at Albury said he expects the market will only continue to get dearer, as the numbers in the south continue to decline.

“We are noticing a lot of the major lotfeeders are comprising on specifications for southern cattle – taking cattle that have good frame but not at the right weight,” he said.

“Some feedlots are taking cattle at 300kg instead of 380kg, but knowing that they can quickly get them there in weight.

“Cattle on agistment in the north of NSW are doing extremely well and will likely be suitable to go straight to slaughter, so there is either cattle that will be too fat or not heavier enough (for feedlots).

“So, I think prices will really start to move from August onwards.”

Limited fluctuations in forward contracts

StoneX Australian livestock and commodities manager Ripley Atkinson said the forward price protection tool had been receiving some good engagement in recent months with contracts on both front months (less than four months away) and deferred months (more than four months).

“Trades continue to be booked further out the curve, with most interest from buyers and sellers coinciding with the latter stages of Q3 and the spring and summer months of the end of 2025,” Mr Atkinson said.

“In line with the stability of spot feeder grids, trades are getting booked forwards at rates relative to the spot market – as examples, October-25 contract traded at A$3.70 whilst July-25 contract traded late Friday afternoon at $3.70.

“As the forward curve reflects, there is limited up or downside movement in the bids and offers from the market, suggesting most participants expect pricing to remain relatively stable through to the end of 2025.”