GROWING unease over seasonal prospects in some parts of the country has seen the momentum in early-season slaughter cattle turnoff continue over the past week, with some producers deciding to ‘take the money and run.’
The heatwave across the four eastern and southern states since late last week has only heightened the lift in cattle movement this week, as producers in some areas seek to unload as grass paddocks deteriorate.
A clear sign that slaughter numbers are plentiful at present was that quite a number of Queensland processing plants ran work shifts yesterday – despite the gazetted Australia Day holiday.
Some Queensland processors are now three weeks forward on direct consignment bookings – somewhat unusual for this time of year. If the current trend continues into February, it suggests the typical post-Easter peak in annual turnoff in Queensland may be diluted by earlier disposals – especially for cows and grass steers.
The national seven-day kill for the week ended Friday reached almost 141,000 head – up 8000 head on the previous week (some northern plants still returning to work), and 45,000 head higher than this time last year. It means 2025 weekly kills are now basically fully-restored on where they left off late last year, and are only likely to trend higher. Queensland accounted for more than 52pc of last week’s national kill.
Clearly, some producers at least have decided to offload at current prices that aren’t too bad, rather than wait and ride a market down if conditions continue to deteriorate. Moving early seems to be the common pattern this year, perhaps influenced by events experienced in previous drought cycles.
For slaughter cattle, many direct consignment grids have come back 20c/kg since the start of the year, but rates still look reasonably solid.
In southern Queensland, competitive grids this week have 580c/kg on good heavy cows, with heavy grass export steer four-teeth 640-650c/kg (some grids offering 10c more for no HGP).
Some of those offers are back 10c on last week, while others are unchanged, depending on their previous week’s position. Most grids appear happy to price cattle three weeks forward, at this stage.
Central Queensland sheds are typically 10c/kg behind those quotes.
In southern states, seasonal outlook and sheer weight of numbers are also influencing prices, with quotes out of southern NSW this week showing 640c for grass ox and 580c on cows, with eastern regions of South Australia 600c on best cows and 650c on bullocks. Some of those quotes are down 10-20c.
Monsoonal influence next week?
In northern Australia, some sold falls of 25-100mm are forecast over the next eight days across the Kimberley, VRD and Barkly Districts and across north and northwest Queensland. BOM says a Tropical Low may form in the Gulf of Carpentaria on the weekend. From Sunday, the likelihood of this becoming a tropical cyclone increases to moderate, BOM says.
Saleyards channel
Yesterday’s Monday public holiday was partly to blame for smaller numbers offered at Tuesday sales across the eastern states this morning, but the general trend in slaughter type cattle was cheaper.
Gunnedah sale this morning was almost halved in size, offering only 2350 head. There was a good supply of medium and heavy weight yearlings along with a greater percentage of cows. All classes of yearling steers sold to cheaper trends with falls of 20-30c/kg common. There were too few heavy grown steers to process for a quote. The recent high demand for cows was not as evident with market trends cheaper by 15-20c/kg and more in places where quality was a factor.
Wodonga sale this morning dropped 1100 head on last week to 1700 head. The northern influence at the market waned and prices for secondary types was notably cheaper. In the export market competition was weak. Heavy steers averaged 310c/kg, bullocks sold to a small field of buyers to average 325c/kg. A large offering of cows met a smaller field of buyers and prices slipping 10-15c. Heavy cows traded from 274-296c. It was a notably weaker market for leaner grades under 520kg.
Roma sale this morning yarded 7913 head, more than 3000 less than last week. A preliminary report (some categories still to be sold) suggested a mixed quality yarding with the market easier for all descriptions. Yearling steers 330-400kg made to 420c/kg which was 20c less than last sale. Yearling steers 400 to 480kg made from 310c to 390c/kg. Grown steers over 600kg topped 344c/kg. Full Roma report tomorrow.
Naracoorte sale this morning was well down in size, to 919 head. A limited number of cows saw plainer medium weight cows sold from 110c to 180c, heavy 3 and 4 score cows from 255-320c with the 2 scores selling from 247-272c/kg.
WA cows currently $4.80/kg carcass weight.