JUST two or three weeks ago, southern processor buyers were still operating vigorously in northern parts of the country securing slaughter cattle – but this week the reverse has started.

With hotter weather, an abundance of cattle has now appeared in parts of Victoria, southern NSW and eastern regions of South Australia, with prices now making the 30-40c/kg freight bill to get them home attractive enough for Queensland processors to start making purchases and booking trucks.

Adding to that, Queensland processors are now much tighter for local supply, as the large runs of western and northern cattle come to an end for the year.

Cattle from as far south as the Carcoar region have been trucked north this past week as the supply momentum shifts.

Grain harvest commitments have interrupted cattle supply in some areas this past week, further shortening up supply for some exporters.

October beef export statistics released last week set an all-time record at just over 130,000t, reflecting the gradual build-up of processing capacity that’s taken place since around mid-year.

Excluding week 41 (ending October 11, which was impacted by public holidays), the beef processing industry has averaged more than 142,300 head for the four weeks of October – the highest four-week production level seen since December 2019, when the industry was still furiously killing cattle due to drought. The industry processed an additional 65,000 head over the four weeks to the end of October, compared with the same period last year.

Barring weather disruptions, it’s setting up the final quarter of 2024 as a the strongest beef production period since the fourth quarter of 2019.

Last week’s seven day national slaughter remained high at 140,736, but the number included some public holiday impact due to Melbourne Cup Day last Tuesday. As a result, Victoria’s tally eased by 3600 head, which if left intact, would have pushed numbers closer to their recent threshold around 145,000.m

Direct consignment prices steady

There’s been little evidence of changes to direct consignment offer prices across eastern and southern Australia over the past seven days.

Some Central Queensland plants are already heavily booked, saying they have only a week or so left in kill spaces before 2024 season closures around December 14 or 21.

Reflecting current high throughput and strong spring cattle supply, there’s been no change in major Queensland or southern state slaughter grid offers this week, despite southern supply lifting considerably through the past month of warmer weather.

In southern Queensland, over-the-hooks grids from competitive export processors are this morning showing 600-610c/kg for four-tooth steer with implant, and cows 530-540c/kg. Some plants in the region appear a little better placed than others for rosters into November.

Central Queensland rates are mostly 10c behind those numbers.

In eastern parts of South Australia, grids seen this morning are showing 610c/kg on grass four tooth ox and 550c/kg on heavy cows, following some 20c/kg reductions back in late October.

Processors in southern regions of NSW have left grids untouched again this week, with cows currently at 510c/kg and four tooth grass export steer no HGP on 590c.