RAIN, or the prospect of it, again became a focus in slaughter cattle market psychology this week, with impacts being seen in some smaller saleyards yardings and a few logistical problems in delivery of direct-consignment cattle.

As today’s separate report shows, falls have been generally light, with scattered more useful registrations in some areas where rain is badly needed. Large parts of NSW, southeastern SA, western Victoria and far western Queensland have received at least 25mm or more for the week ended 9am this morning.

On Queensland’s Darling Downs, falls of around 10mm were more common, while bigger falls of 40-70mm were recorded in patches of cattle country around Gunnedah.

With Chinese and Korean quota/tariff impacts on Australian meat exports now within sight, export meat trading conditions have tightened, and the recent lift in the value of the Aussie dollar, higher packaging and energy costs has not helped that cause.

It’s made processor margins on most slaughter cattle look considerably thinner than what was seen earlier, with some claiming certain categories are now ‘only just’ in the black.

It presents an interesting outlook over the next few months about which export processors push hard on procurement, and which retract into a more defensive position. Some relief in fuel and transport costs has motivated some upkick in Victorian/southern NSW processor buying activity again, pushing into Queensland and northern NSW.

Local numbers are getting very short in some areas of the south heading into June, pushing more southern operators back into Roma and Gunnedah saleyards today, and likely at Dalby tomorrow.

Stoppages last week at the nation’s largest plant at Dinmore, southwest of Brisbane, will take some numbers of Queensland’s slaughter tally for the week ended Friday. Dinmore lost a day to an unusual industrial incident after an ammonia leak in the plate freezing room caused the plant to be evacuated.

For anybody who has spent time in beef plants in eras past, the pungent smell of leaking ammonia gas used in refrigeration was a constant companion, and nothing to get excited about. Times have evidently changed in the WH&S space.

The next day was Ipswich Show holiday, limiting Dinmore’s kills last week to three days.

Grids steady

After some large 30-40c jumps in grid price offers seen in Queensland last week (some of that, at least, to square-up with competitors who had moved earlier) there appears to be few substantive changes in over-the-hooks offers anywhere across Eastern Australia this week.

Best offers seen for kills in southern Queensland later in May or early June have good quality heavy cows at 670c, and 755c-760c/kg on four-tooth grass ox (some grids 765c for no HGP).

Central Queensland rates are anywhere from 20-35c/kg behind those numbers, reflecting local supply, which may prompt some vendors to look further south to do business.

Similarly, there is little sign of over-the-hooks grid adjustments this week in southern states.

Competitive quotes in the eastern regions of SA have good heavy cows on 750c and grass ox four teeth no HGP on 850c; while in southern regions of NSW best quote seen have steers on 850c and boner cows on 750c.

In the grainfed space, there’s been a lift in forward contract prices for September delivery offered by a large southern Queensland grainfed supply chain, with 100-day ox quotes now at 850c/kg, up from 840c for August delivery. Higher feedgrain and feeder prices have contributed to that.

Woolworths contract holders for August delivery are at 965c/kg on YG grain steer, with Coles 10c above that for the HGP sacrifice.

Saleyards trends:

With widespread if moderate rain around over the past week, saleyard numbers have trended down as vendors wait to see what eventuates.

Gunnedah yarded only 2200 this morning – barely half last week’s numbers. All major buyers were present for an overall much stronger market. Yearling steers to feed were 25 to 35c dearer, making 470-539c to average 527c. The heifers ranged from 426-490c/kg. Prime grown cattle to the processor were limited and ranged from 400-480c/kg. Cows were 20-30c dearer with score 2 cows making from 252-315c, score 3s 300-355c and prime heavy cows 338-404c.

Tamworth yarded 3290 yesterday, down 670 on last week. It was a fair quality yarding that consisted predominately of cows and yearling type cattle. All major buyers were present for strong competition in an overall dearer market. Yearling steers to feed were +20c dearer to range from 444-540c/kg. Heifers to feed were also considerably dearer and made from 396-492c/kg. Prime grown cattle to the processor were up to 20c dearer. The steers topped at 530c and the heifers got to 467c/kg. Cows were 10-15c dearer across the board, with score 2s 280-302c/kg and score 3s 300-355c. Prime heavy cows sold form 340-394c/kg.

Mortlake yarded 1800 yesterday, up 640 on a week earlier. Bullock and grown steer offering was more mixed with a higher proportion of manufacturing types. The cow offering comprised 44pc beef cows with the balance being dairy bred.  The market was firm to 5c/kg stronger for trade and bullock offerings largely quality driven. Heavy beef cows were 20-30c/kg softer while medium weights and dairy cows eased by 10-15c/kg. Bullocks sold to a top of 483c/kg. Better quality trade cattle ranged from 465 to 520c/kg with feeders paying toward the upper end. Heavy beef cows made 350-382c/kg while mediumweights sold from 320-355c/kg.

Roma yarded 6500 this morning, up 11pc on last week. The market was dearer for light backgrounding steers and heifers, while heavy feeders, bullocks and heavy heifers were firm to dearer. Cows were easier throughout. Feeder steers +480kg sold from 418-486c/kg  Grown steers 500-600kg sold from 418-498c/kg, while steers +600kg averaged 430c/kg. The cow market could not maintain the levels of the previous sale, with score 3 cows +520kg selling from 308-388c. The score 2 cows 400-520kg sold from 234-290c/kg.