Quoted paddock-sale prices for 400kg plus flatback steers in Southern Qld/northern NSW have wound back in recent weeks in response to good seasonal supplies of cattle and last week’s reduction in slaughter grid prices.

Beef Central’s inquiries with several buyers and agents yielded a wide spread of reported quotes for paddock sales of flatback feeders from $3.50 to $3.75 (delivered to feedlot), but with $3.60 the most widely quoted rate.

Saleyards indicators for feeder steers have similarly eased in recent weeks – on Monday the National Feeder Steer Indicator* was at 362c/kg, down 6c on our last feeder update two weeks ago.

The specific 400kg + feeder indicator nationally eased 16c over the last fortnight to 364.1c, with the Qld 400kg+ indictor 28.5c lower to 345.9c and NSW 11.5c down to 377.9c.

There have still been strong sales in the category in individual yards such as Roma last Tuesday and Dalby on Wednesday where a line of 400kg Santa steers fetched up to 406c/kg.

A softening trend with warmer weather into September is not unusual at this time of year, with feedlots said to be largely well supplied with cattle at the moment.

“It is a typical strong supply period at this time of year,” Antony Glynn from Ottley Capital at Moree told Beef Central.

“It is a decoupling from the price of grain or the demand for meat, it is just the supply of numbers.

“The forecast for the barley crops is quite a number of times greater than the requirement for barley into feedlots, so that probably tells a story.”

Mr Glynn said exceptional growing conditions in areas like Moree are also contributing to strong levels of supply at present with the performance of cattle exceeding expectations and reaching market weights earlier than expected.

RMA CEO Chris Howie’s September report for Beef Central referred to the strength of feed in Central NSW causing many feeders to blow top end weights. “Grazing crops and clover are outstanding and the cattle are really doing well which is catching some out when estimating how many they have to sell for feedlot specs. Considering the time of the year and strength of feed, weighing early maybe a good idea,” he advised.

Further north at Dalby, David Thornberry from Eastern Rural said many feedlots were reporting they had numbers relatively well covered at present.

In online markets, heavy feeders +400 kg on A+ on Friday slipped 18c/kg to average 389c/kg.

That’s an on-property price, with delivery freight to come.

It also covers all descriptions from Brahman cross to pure Angus, across Australia.

Offering numbers were low at 376c, but still managed to clear only 61pc.

The Australian feeder steer indicator is currently sitting not far below the five-year average, as the below chart published by Elders’ business intelligence analyst Richard Koch in his latest monthly market update shows.

2024 Australian feeder steer indicator price vs 2023 and the 5 year average. Chart: Elders/Data source: MLA

“Although feeder cattle have given up some price gains this week, they have been gaining momentum fuelled by lower grain prices and improving feeding margins.

“In the past week, grain prices have made season lows with wheat falling to around $300/t in the north and barley at a $20/t discount on news that the Chinese Government ‘unofficially’ told importers to slow down purchases.

“In contrast to last spring, we should see feeder cattle prices move higher towards the five year average through the next quarter.”

Futher reading: Feedgrain Focus: South firms as yield outlook slips

* MLA’s National Feeder Steer Indicator is an average of all cattle in saleyards across Australia and breeds that fall within the feeder liveweight and muscle/fat score specifications

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