Processing

Weekly kill: Grids slide another 10-20c/kg due to supply pressure  

Beef Central 04/02/2025

DIRECT consignment slaughter grids across eastern and southern Australia have generally trended down 10-20c/kg over the past week, as a vigorous early season turnoff cycle continues.

Some Queensland processors are now taking the bulk of their bookings for week commencing 24 February, with space bookings only for the first week in March.

Some operators have been selective in saleyards buying over the past week or two, with plenty of over-the-hooks cattle about. Breakdowns have apparently slowed production at at least one Queensland site this past week, pushing some bookings back in the roster.

Large saleyards yardings seen across eastern Australia last week generally saw a significant price correction on store and slaughter cattle, which in turn has seen may yards offering reduced offerings this week as vendors reacted to lower prices. Quality is slipping markedly in many recent southern sales, with quality slaughter cattle now harder to find.

While there has been some solid rain in parts of North Queensland, the northern half of the NT and the Kimberley over the past week, disruptions to processing have been confined to Queensland’s most northerly plants in Townsville and Mackay at this stage. Rain is forecast in some models to drift south later this week.

Competitive processors in southern Queensland this week are offering 560c/kg on heavy cows, down 10-20c on this time last week, and 630c/kg on four-tooth heavy grass ox (some grids offering an extra 10c for HGP-free), also back 10-20c. Central Queensland sites are typically 10c/kg behind those rates.

Below the border, grids seen from processors in southern NSW have offers this morning of 580c on heavy cows and 640c on grass ox, with the eastern parts of South Australia showing 640c and 590c – mostly back 10c due to numbers.

Plenty of cattle about is the simple reason – processors are not having to try any harder to fill their rosters. Bigger money seen a couple of weeks ago evidently flushed a few more cattle out.

There’s been more talk over the past week about scarcity of surface stock water in dry areas, which on top of low feed reserves is no doubt also adding to the current cattle turnoff pattern.

National kills take a breather

Last week’s Australia Day Monday public holiday put a big dent in national beef production for the week ended Friday – despite the fact that some large export processors carried out kills on the public holiday.

The national slaughter for the seven days to Friday reported by NLRS saw a drop of more than 19,000 head (14pc) on the previous week, to 121,772 head. All states were impacted, with Queensland losing close to 10,000 head on its own.

This current week is also likely to be impacted due to weather, especially in Queensland where JBS Townsville and Borthwicks Mackay will both miss days this week due to the impact of the recent monsoonal low that has dumped up to 500mm across some coastal areas. Townsville is unlikely to kill until Friday, at least, Beef Central was told.

While it looks like drifting further south in some models, the rain influence has not yet impacted processing operators or supply in Central or southern Queensland.

With no more national public holidays now until Easter (18-21 April) processors are now sailing into some clear air, with weather the only likely disruption to full kill rosters for the next 11 weeks.

From mid-April, though, there will be a series of short processing weeks impacted by Easter, ANZAC Day and a little later, Labour Day and King’s birthday holidays (different dates in different states).

Saleyards numbers ease

After saleyards market prices generally declined last week, vendors have responded this week with much smaller yardings in most selling centres. The exception has been some Monday sales held yesterday, which were effectively two sales in one, having been closed last week due to the Australia Day break.

Gunnedah sale this morning saw a yarding of 2590, with commentary pointing to a slip in quality and condition after hot, dry conditions. Weaker processor demand for export cattle resulted in the well finished heavy grown steers and grown heifers selling to cheaper trends. There were quality related price variations in some cow classes, most noticeable on the plainer condition lots. Overall however the trend was slightly cheaper, up to 13c on the well finished heavyweight cows.

Wodonga yarded 1630 this morning, down on last week. Quality was described as very plain to mixed, resulting in a fair percentage selling into manufacturing. In the export market  competition was notably stronger. Heavy steers averaged 330c/kg, with bullocks sold to a larger group of buyers to average 329c. The mixed quality offering of cows met a bigger field of buyers and prices softened over all classes. Heavy cows traded from 262-290c.

Wagga sale yesterday yarded 6000 head – down on the previous sale, despite the fact there was no sale last week. The quality of the stock slipped due to the hot and dry conditions. The market experienced a notable downturn across most categories with feeder prices coming off the boil 2030c/kg. There was pockets of strength across heavy bullocks classes with the younger types attracting buyers. Prices for bullocks firmed as the market progressed, to show a significant price spread from 305-384c/kg. Heavy steers directed to processors sold from 311-332c, while heavy cows saw prices strengthening midway through the sale, selling at 260-298c, while leaner types ranging from 225-276c.

Forbes sale yesterday yarded 1852, with quality described as mixed but fair with both well bred and secondary cattle penned. The usual buyers were present and competing in a cheaper market.   Finished lines to processors received from 289-340c/kg.  Heavy steers and bullocks sold from 320-345c. Cows were back 15-18c, with heavy score 2s sold  from 255-278c with score 3s 275-288c.

A preliminary Roma report (full details tomorrow) showed 4444 head on offer – down more than 3400 head on last week. Cows were yet to sell at the time the report was filed, but the broader market was described as slightly stronger. Yearling steers 400-480kg to feed made from 356-381c/kg. Bullocks over 600kg sold to 339c.

 

 

 

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Comments

  1. Mark Thomas, 05/02/2025

    MUCHEA (WA) CATTLE REPORT 28/01/2025
    Total Yarding 763

    Vealer steers sold from 150c to a top of 340c while vealer heifers ranged from 60c to 260c all quality dependent. Yearling steers made 180c to 300c while Yearling heifers sold from 60c to 278c/kg.

    Grown steers returned 250 to 288c while grown heifers made 220c to 270c/kg. Plain cows sold from 80c to 180c, medium cows from 180c to 200c and prime cows up to 244c with one exceptional cow topping at 250c/kg.

    Bulls returning to the paddock sold from 100c to 180c while shipping bulls made 180c to 304c and slaughter bulls returned 150c to 240c/kg.

    SOURCE: NLRS

  2. Warren Hunter, 05/02/2025

    It’s very concerning to see prices dropping in such a short time when beef export prices are up to record highs. This excuse of plenty of supply is unexceptable and very manipulating. 90 CL cow beef is nearly at $11 /kg last week.
    While we need processors to be sustainable, graziers also need to be sustainable.

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