Lotfeeding

Feeder cattle market: Christmas break looms large

James Nason 02/09/2024

The festive season is more than three months away but is likely to be front-of-mind for buyers of feeder cattle this week.

With 114 days until Chrismas, feeder steers being bought this week to enter 100-day feeding programs may still squeeze into processing bookings before plants shut down for the end-of-year holiday and maintenance period, or be delayed until New Year kills recommence.

As a result a temporary ‘lull’ can affect the early September market as buyers work around Christmas closure dates.

“I’d say if you haven’t got them on feed now you’re probably smack bang into Christmas,” one buyer said this morning.

“You might just be getting in the last week before they process if you do everything right.”

The market for 400kg plus flatback steers on the Darling Downs has held largely firm over the past two weeks according to buyers Beef Central has spoken to in recent days, with feedlot rates out of the paddock said to be around the 380c/kg range.

Higher money has been paid for some large runs at auctions in the past week – one example being the 416 Droughtmaster Simmental cross steers from Reynella, Charleville, weighing 460kg on average, which averaged 389c/kg at Roma last Tuesday, bought by Australian Country Choice.

(When comparing saleyard and paddock prices it’s worth keeping in mind that vendors have additional transaction costs when selling via saleyards versus the paddock – More detail on FutureBeef website here).

Last Wednesday’s Dalby report included heavy feeder steers selling to 397c while Blackall on Thursday saw flatback feeder sales to 386c.

At time of sending Beef Central’s daily news email on Monday (subscribe here for free) the overall National Feeder Steer Indicator* stood at 368c/kg.

That was 2c lower than our previous feeder cattle market update two weeks ago (370c).

More specifically the national saleyard indicator for 400kg+ feeder steers stands today at 380.7c, almost identical to two weeks ago.

The Queensland 400kg+ indictor is at 374.4c (1c lower than two weeks ago) and NSW 389.4c (9.4c higher). (Other States not included due to limited numbers reported in the same category) 

Feeder steer numbers in saleyards have increased over the past two weeks, with some pointing to early, unseasonably hot weather last week, the final week of August, as one reason for the rise.

One buyer suggested that at the cost of rations currently being fed, a close out price of 720c/kg dressed weight for 100 day grainfed steers in December/January would be needed to break even on 380c/kg steers bought today.

But falling northern grain prices are also changing that picture, with reports below $300 per tonne for wheat and barley. No feedlots would have cheaper grain the silo and getting processed yet, but the lower rates will start being factored into 100 day programs soon.

In online markets heavy feeder steers +400kg showed a sharp improvement in the past week, lifting 33c to average 411c/kg.

A line of 16-17 month old Simmental Angus cross steers from Tasmania averaging 464kg sold to buyer from the same State for 412c/kg.

*

(The National Indicator is an average of all cattle in saleyards across Australia and breeds that fall within the feeder liveweight and muscle/fat score specifications)

 

 

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