RECORD high late-August temperatures in many areas have acted as a call-to action for some producers, pushing more cattle towards processors either out of the paddock or via the saleyards channel.

Direct consignment slaughter grids across large parts of eastern Australia have retracted since Friday, as processors suddenly find an adequate supply again, after being squeezed earlier because of rain and other factors.

Processor grids in the highly concentrated southern Queensland region have lost 10-20c/kg since Friday, with bookings now looking solid through the first half of September, and in some cases well supported through to close to the end of the month.

“There’s still some holes at the back end of September, but bookings are ticking over a lot better now than what was being seen only two or three weeks ago, when there was some wet weather about,” one Queensland processor said this morning.

“The hot, dry weather has certainly been a motivating factor, but so too has been the meat sales trading conditions, which hasn’t gotten any better – if anything it has come off from earlier numbers.”

One Queensland processor said he had clients who this time last month were requesting their kill slots to be put back a couple of weeks, who as of this week were asking to be brought forward.

“The big change in the weather has unsettled them,” he said. “It’s very erratic, at present.”

Competitive processors in the southern Queensland region are this morning offering 540c/kg on good quality heavy cows, and anywhere from 600-620c on four-tooth grass heavy steer, with implant. Some operators have 610c for no implant steer.

This week’s correction follows a sequence of rises of 20-30c in cow and steer markets in late August, making recent trends erratic, to say the least.

Central Queensland plants have followed suit, now typically 10-20c behind southern Queensland.

The onset of hot weather last week may also motivate some larger operators in western and northern Queensland to try to wrap-up their 2024 rounds as early as possible, before conditions become too intense.

Opinion is varied about likely flows of the big runs of cattle out of far western and northern Queensland over coming months.

Some say the bigger northern operators have now caught-up, having been a month or six weeks behind their normal cattle schedules back in April, due to rain delays. Others say they won’t catch up this year, and will see some carry-over into 2025 – especially in areas where feed is adequate or better.

How spring rain unfolds will largely dictate cattle flows over the remaining 2024 slaughter season. Cash flow requirements may be another factor, especially among those producers who have held back a few more cattle to make the best of available feed.

With this week being week 36, it means there are now only 13 or 14 operating weeks left for Queensland’s larger export processors, before the shut down for the traditional Christmas break.

Logic would suggest there will now be a run of cattle, if conditions stay as hot as they have been in parts of eastern and Central Australia since late August. If that happens, and it stays dry, it will inevitably put more downwards pressure on slaughter cattle prices, as the industry has demonstrated throughout the year that killing capacity is currently somewhat inelastic, tapping-out at around 140,000 head per week (see kill numbers below).

In southern Australian processing regions, some direct consignment grids in southern NSW are back 20c/kg since yesterday, with cows now 570c and four-tooth grass ox 640c. Eastern regions of South Australia are unchanged, with cattle supply in the area still very tight.

Meat sales struggling

Reports from export meat sales trading desks remain somewhat subdued, with tough trading conditions continuing on markets like China, Japan (see separate report tomorrow) and South Korea. The grinding meat market, and trade into the US, remain the only real highlights, and a rising Aussie dollar is not helping in a price-conscious economic environment.

The close relationship between prices for slaughter cows and grass ox for quality table meat – currently only 60-80c/kg carcase weight difference in Queensland, reflects the relative strength of the manufacturing meat market.

Saleyards numbers rise

Saleyards operating early this week generally numbers rise, but lower attendance from meat processors.

Wagga sale yesterday yarded 3500, up 1400 on last week, as vendors responded to last week’s dearer prices and hot weather. Quality was fair to very good, with some stock coming out of the Riverina. The majority of heavy steers 500-600kg sold from 355c to 426c/kg. Heavy steers to process eased 8c with the aged portion discounted heavily, the bulk selling from 280-405c/kg. Bullocks lost traction with buyers not interested in chasing the market. Prices came off the boil 36c to average 350c/kg. In the cow sale not all companies were present. Heavy cow prices fell 27c to average 321c/kg, with the middle run of leaner types selling to fluctuating price trends with younger types keenly sought at times. The bulk selling from 230c to 318c/kg.

Gunnedah sale this morning yarded 2900, up 650 on last week. Vealers and yearlings were offloaded in large numbers while cows were also well represented. There was a limited supply of well finished export cattle. The well finished heavy grown steers and the older manufacturing steers experienced little change. Well finished grown heifers were as much as 10c/kg cheaper. There was a greater supply of medium weight cows than normal, with demand for all classes weaker with the market trends as much as 17c/kg cheaper.

Wodonga sale this morning yarded only 650 head, with buyer attendance suffering as a result. Bullocks and steers ranged from 329-398c/kg. Despite the smaller offering of cows market trends was exceptionally weak. Heavy cows struggled to gain any sort of momentum after last week’s exceptional prices, with heavy types dipping 37c selling from 302-340c/kg.  Leaner grades made from 258-296c/kg.

While the sale was still underway as this report was filed, a preliminary Roma store sale report said the yarding reached 7300, up almost 1400 on last week. Weaner type cattle were plentiful, but kill-weight cattle were light-on. All the regular processors, lotfeeders and backgrounders were present, however selective in their purchases. Grown steers 500 to 600kg topped 338c with the +600kg entries making to 340c/kg. Full Roma report as usual tomorrow.

Seven-day kill

Last week’s national adult cattle slaughter continued in its current groove around 140,000 head, as it has since late May.

The seven-day total to Friday saw a tally of 140,990 head, down a couple of hundred on the previous week. Queensland accounted for 53pc of the total, at 75,200 head – up around 7400 or 11pc on the same time last year, while NSW processed 34,490 head, up 9pc on a year ago. Victoria’s weekly kill reached 21,446 head, up 38pc on last year, boosted by continuing inflows of slaughter cattle out of Queensland.