DIRECT consignment slaughter cattle offers were mostly steady this week, after an early period of solid rises saw booking activity expand.

With the exception of southern regions, many export processors are now well subscribed for slaughter stock until mid August, and in some cases beyond that.

A notable feature in Queensland is the continuing presence of processors out of Victoria and southern NSW sourcing slaughter stock. That’s happened despite an attempt by Queensland-based competitors to drive them out of the region, by sharply raising over-the-hooks prices two to three weeks ago.

While a couple of southerners have now dropped out of the Queensland buyer ring, others have pressed on regardless, despite the big freight cost to get northern cattle back to their plants.

One observer told Beef Central that Victoria’s Midfield had bought perhaps 700 head (mostly cows) out of last week’s Roma sale, and a similar number out of Dalby last Wednesday. And large numbers are also being bought out of the paddock in Queensland, for southern destinations.

The trucking yards at Morven (between Mitchell and Charleville), for example, recently processed 4000 head in a week – mostly cows from the central west and northern parts of the state, for southern destinations, but also some bullocks destined for southern Queensland processors by rail.

Further south, spelling centres like Deniliquin are busy, with 1400 northern cows passing through the facility in a single day recently.

As there always is at this time of year, there’s some big runs of cull cows presently being turned off Queensland’s larger cattle holdings in the central west, far west and northwestern regions, and clearly, some of these are being captured for processing south of the border.

Recent market price rises do not appear to have deterred southern operators too much, with many pushing on, regardless. One well-connected contact speculated that northern cattle might be making up 50pc of kills for some Victorian/NSW processors at present, especially among the hot-boners.

Cows in demand

There’s been a clear narrowing in the price difference between grass heavy steer and cow over the past few months, in response to the strong international demand for manufacturing beef.

90CL boneless beef trimmings into the US hit a record high (measured in Aussie dollar terms) last week, at 987.9c/kg. The previous record of 967c/kg was set back in late 2019, when panic set in among US buyers when US beef plants closed in big numbers due to COVID sickness and absenteeism. Measured in US$ terms, the market is not quite at records yet, but getting close. Last Friday’s quote was US291c/lb – the highest seen since the record 306c/lb set in February 2022. More on manufacturing meat prices in a separate story later this week.

The relative strength of the cow market at present is also reflected in the female slaughter ratio, (percentage of females in the overall weekly beef kill), which has sat between 48.5pc and 52pc for the past eight weeks, as producers react to strong cow price signals.

Whereas grass ox and heavy cows have historically been separated by 80-100c/kg carcase weight in price, the current gap in the Queensland over the hooks market is around 60c, and in southern processing areas, 50-60c/kg.

A similar trend is evident in the saleyards channel, where good money available for cows is “dragging them to market,” a Queensland supply chain manager said this morning.

“There were more than 11,000 at Roma this morning, and 6600 booked for Dalby tomorrow, and a healthy percentage of those are cows,” he said.

“Rather than holding them until either side of Christmas and selling them as proper fat cows, some producers are looking at the reasonable money available now, and taking it,” he said. “In some cases it means they aren’t tieing-up another paddock for another six months.”

Having said that, the quality and condition of cull cows has declined recently, as the best examples have already found their way to market. That’s had an impact on profitability per head, one processor said – both as a consequence of average carcase weight (there is little if any production cost difference between processing a 270kg cow and a 330kg cow), and carcase yield.

Direct consignment quotes

Competitive direct consignment quotes from processors in the southern Queensland region this morning suggest prices on good heavy cows are currently at 530-550c/kg, with 590-600c/kg available on four-tooth grass ox, with an implant. Some less competitive grids in the region still have grass Jap ox at around 570c.

Central Queensland plants are currently 10-20c/kg behind those rates.

Reflecting current very tight cattle supply in southern states, eastern regions of South Australia are 600c/kg this week on good boner cows and 650c on four tooth ox, while southern NSW grids seen this morning have four-tooth ox on 650c/kg (no HGP is mostly quoted in southern states) and good heavy cows 590c/kg.

Slaughter rate tracks 140K

Last week’s NLRS slaughter report shows the continuation of numbers around 140,000 head/week, which has largely applied since late May. The seven days ended Friday produced a number of 140,664 head, up a handful on the week before, but 18,900 head more than the same week last year (week 31).

Expect to see a small dip in production volumes in Queensland next week, as a number of large plants in the state’s southeast corner celebrate a Brisbane show day holiday.

Saleyards channel

Wagga sale yesterday yarded 3290, similar to last week. Among lines attractive to processors, the majority of heavy steers 500-600kg sold from 340-414c/kg. In the export market, competition was once again patchy, from processors, the strongest competition came from lotfeeders for both heavy steers and bullocks. Heavy steers and bullocks sold between 360c and 384/kg. Due to the stronger pressure being applied by feedlots processors shifted their attention to heavy heifers over 500kg. Prices lifted by as much as 24c to average 344c/kg. Heavy cows sold from 305-336c/kg. Middle run of leaner types made good gains selling from 265-318c.

Gunnedah this morning yarded 1740 – similar to the week before despite more rain about. Among processor lines, cows were well-supplied while well finished grown cattle were scarce. Demand for well finished grown heifers was strong with market trends dearer. The cow market failed to reach the heights of last week resulting in cheaper trends, quality change resulting in some positive price change in odd classes.

Wodonga sale this morning saw a smaller yarding of 850 head. Bullock prices lifted, selling to 390c/kg. Heavy steers gained 9c selling from 320-380c/kg. Heavy cows jumped 13c and traded from 305-345c. D2 and D3 cows less than 520kg sold from 220-273c/kg.

Forbes sale yesterday yarded 2071 head, double the previous week. Prices were firm to dearer across most classes. Heavy grown steers to export processors made to 372c and the bullock portion made to 368c/kg. Some excellent quality heavy export heifers made to 369c to average 366c/kg. Medium weight 2 score cows averaged 242c and made to 260c/kg, with heavyweight 3 score cows were noticeably dearer to averaged 288c and the best of the good heavy cows made to 315c to average 306c.

Roma sale yarded 11,189 head this morning, up around 3300 on last week. At the time of this interim report, the market was firm on the previous sale. Grown steers 500-600kg made to 300c with bullocks +600kg topping at 288c/kg. More in tomorrow’s full Roma report.