AGENTS are this week reporting that cattle markets are steady to weaker and under supply pressure as the season continues to tighten in most areas.

Although export beef prices remain excellent and underlying confidence is good, processors and feedlot operators have as many cattle as they can handle with hot and dry early autumn conditions seeing producers turn off saleable cattle. Restockers are on the sidelines waiting to see what the season brings.

Queensland has been disrupted by works and port closures due to the cyclone that have left a backlog of supply. Works are booked for 6-8 weeks in some cases, with prices quoted only two weeks out.

With several short processing weeks coming up around Easter, Queensland producers will be looking at rain forecasts to aid them in pushing back supplies until after Easter when works are at full capacity.

Source: NLRS

This chart shows saleyard indicator prices for major cattle categories.

It is hard to get a quote from Queensland feedlots for feeder steers at present, with one agent saying he is getting calls from producers he hasn’t heard from in four years. Weaner cattle were back 20-30c/kg lw last week with heifers again under a lot of pressure.

Most of Queensland is ok season-wise, but with numbers having been built up over the past 3-4 years and weaning coming up again soon, there is a need to keep cattle moving through the pipeline. A good rain event would buy producers a bit of time and smooth out supply.

In northern NSW, despite some patchy rain on the northern tablelands and slopes last week, solid numbers continue to come forward with slaughter cattle selling to a weaker price trend on weaker processor competition. Mixed quality offerings of weaner cattle are selling to price trends determined by quality with firm prices on heavy weights but softer on the lighter stock. This is indicative of a plain season which has been difficult for some and only fair for the majority.

One agent drove from Brewarrina (NSW) to Hamilton and reported dry conditions all the way through, with some ground cover in NSW and a few green patches in isolated areas that have had storms, but the closer he got Victoria the further the season falls away with conditions once into Victoria described as ‘terrible.’

Across southern markets (southern NSW, VIC & SA), producers are in the last throws of offloading any saleable stock with many carting water and available feed supplies very low.

More than 8000 were yarded at Wagga this morning, and with preg-testing well advanced, there will be a few empty cows to come, but otherwise, numbers of slaughter ready and feeder ready cattle should soon start to lighten off.

Rain of 15-200mm across major livestock areas of Western Australia will be a godsend to producers running out of stock water and will be enough to get them through until winter rainfall patterns begin.

While it is too early to get a handle on the impact on WA markets it’s likely that the rain will reduce forced sales and let the processors catch up. Area’s north of Perth are dry, however, much of the livestock have been moved out with sheep numbers well down.

Elders held the first of their special Tasmanian weaner sales at Powranna last week with an Angus-only sale of just over 2500 head. Most cattle sold to local backgrounders with only 600 heading to the mainland.

The best of the heavy feeders over 330kg sold to just under $4/kg lw with those less than 330kg selling for a bit over $4/kg lw. Like in other states, prices for quality stock are holding on, but anything less is being discounted with rainfall deficiencies building.

Source: Richard Koch, Elders