RAIN across large parts of the Northern Territory and South Australia has largely been credited for an uptick in prices for some feeder cattle, while large numbers have kept the market firm in other areas.
Angus prices have risen 10-20c in the past week, with all quotes given to Beef Central this morning above 500c/kg. Heavy Angus feeder steers on the Darling Downs were going for 500c/kg, with southern lotfeeders quoting between 500-510c/kg.
Beef Central is also aware of one large multi-site lotfeeder purchasing some large runs of Angus steers for more than 500c/kg.
Flatback feeder steers going into Darling Downs feedlots are about 5c cheaper than the last feeder market update a fortnight ago, with 400kg+ steers being quoted between 475-490c/kg.
Feeder steer prices in the saleyards have been relatively steady, as per the table below.
| Indicator | Head count | Av Price (lw/kg) | One week change |
| Overall National Feeder Steer Indicator | 6805 | 471c | firm |
| 400kg+ National Feeder Steer Indicator | 3064 | 473c | firm |
| 400kg+ Qld Feeder Steer Indicator | 1059 | 481c | -16c |
| 400kg+ NSW Feeder Steer Indicator | 1709 | 476c | +5c |
| 400kg+ Vic Feeder Steer Indicator | 177 | 439c | -3c |
| 400kg+ SA Feeder Steer Indicator | N/A | N/A | N/A |
| 400kg+ WA Feeder Steer Indicator | N/A | N/A | N/A |
Rain only interrupting some markets
The rain has been partly attributed to the uptick in the Angus price, with significant falls in cattle producing areas south-eastern South Australia and Northern Victoria. A lot of rain has been recorded in extensive grazing areas near Lake Eyre and some primarily sheep producing areas south of Lake Eyre.
There is also a season back off in supply of heavy feeder cattle, with significant numbers going to southern yards in recent months.
However, the rain events in the north have not really interrupted supply to Darling Downs and Northern NSW feedlots, with yards still booked a couple of weeks ahead. Most June contracts for 100-day grainfed bullocks have already been filled, with that price around 850c/kg carcase weight.
Numbers still moving
Significant numbers are coming through the saleyards as well with 7300 head drawn for Roma tomorrow, Gunnedah has 7200 head and Tamworth had 5600 head today.
Conditions are still reasonably dry in Southern Qld and Northern NSW, with both areas largely missing out on this week’s storm activity. Southern Qld had some rain a fortnight ago, however, many of those properties are still needing follow up.
Beef Central was told that large numbers of cattle have been sold out of the New England area of Northern NSW in recent weeks, which normally supplies some bigger rains of Angus cattle later in the year.
A different situation in the US
While numbers are continuing to move in Australia and the market is reasonably strong for all ends of the supply chain, a recent feedlot closure is showing some of the issues the industry is facing across the Pacific.
According to several media reports, Lubbock Feeders in Texas has announced it will shut its 50,000 head yard once it has closed out the current inventory.
The announcement follows several large meat processing plants also shutting their doors in the US, including a large Tyson Foods plant in Nebraska and Cargill plant in Wisonson. Cargill has also announced it is cutting shifts in some of Texas plants.
Lubbock Feeders has given a number of reasons for closing the yard, particularly the historically low herd in the US and cattle not being able to cross the border from Mexico, due to the New World Screw Worm – which the US Department of Agriculture says is within 70 miles of the US border.
If Lubbock Feeders are having to shut their doors because they can’t get cattle, surely the case is building for Australia to send a live export boat to US.