Processing

Weekly kill: Grids soften, as slaughter cattle numbers lift sharply

Jon Condon 21/01/2025

THE new season slaughter cattle market often remains choppy and somewhat unpredictable until after the Australia Day long weekend, and this year is proving to be no different.

Some direct consignment slaughter grids have shown rises, and then falls over the past seven days, as a rush of cattle comes forward. Heatwave conditions forecast between now and Friday have not helped.

Some eastern states processors spoken to for this report are now two to three weeks forward with direct consignment bookings, with some operators now heavily subscribed until weeks commencing February 3 and 10.

The saleyards system has also produced some large rises in numbers this week, with Roma store sale this morning offering 10,900 head – more than twice the size of last week’s sale – and Dalby scheduled to offer 7600 tomorrow. Most young cattle at Roma this morning were sharply lower in value, while the meatworls types were yet to sell by the time this report was filed  (full report tomorrow).

Gunnedah sale this morning yarded 4700 (up 1000 on last week – the largest yarding seen since the 2019 drought). Supply outweighed demand pushing young cattle prices lower, while heavy steers and cows to processors sold to a cheaper trend.

In smaller sales, cows offered at southern Queensland’s Moreton sale that were making as much as 327c/kg last week topped only 297c yesterday.  Warwick sale this morning came off the boil, but not as much as Moreton. Having raised those examples, other yardings this week have held up better in price, demonstrating just how patchy the trade environment currently still is.

Queensland offers

In the nation’s largest concentration of processing in southern Queensland, some grids lifted 10-20c/kg late last week – especially on cows which hit 600c for a short period, and grass steers 670c – but have since retreated as numbers started to flow.

Competitive quotes on heavy cows are currently around 590c/kg, with some isolated offerings as low as 560c. Four-tooth grass heavy steer are being quoted this morning at 660c (some of those quotes HGP-free only, with implanted cattle 10c less).

Heavy bookings arrived over the weekend and into Monday, one regular processor contact said this morning. Showing signs of caution, some over-the-hooks grid quotes in southern Queensland this morning only covered kills for this week and the week after.

Rapidly drying conditions in parts of Queensland above Longreach, where little worthwhile rain has fallen since well before Christmas, has pushed more northern cattle to market.

Central Queensland processor rates are 10c/kg behind plants further south this week, and North Queensland another 10c behind that.

Australia Day is often a traditional decision-making point for Queensland beef producers, with tough decisions about downsizing on cows and young cattle made if it has not rained by then.

In southern states, some processors are now booked three to three-and-a-half weeks forward, with rates softening as a result.

Operators in southern NSW are this week offering 660c/kg on direct-consigned four -tooth grass steer and 600c/kg on good heavy cows, down 10c on last week.

In eastern regions of South Australia, we’ve seen grids this morning offering 610c on heavy cows and 660c on grass steer – back 10c on last week.

Already southern processors are asking where the region’s fat cattle will come from, come April-May. The most obvious answer is that they will head north again – as they did last year – operating for long periods deep into northern New South Wales and Queensland, out of the saleyards and in the paddock.

Typically southern processor buyer presence is not felt in Queensland until May or June at least, but it may happen three or more earlier this year, by the looks, unless there are dramatic changes weather-wise.

Slaughter rates lift sharply

With most eastern states export beef plants now back at work after their summer break, weekly national production is lifting sharply.

The seven-day adult cattle slaughter for the week ended Friday reached 132,886 head, some 16,700 head or 15pc higher than the same week last year, and 60,000 head above the previous week.

Next week will see reduced throughput due to the Australia Day holiday on Monday, but after that, its looking like production will reach, or exceed volumes seen during the first quarter last year. Additional manning levels at many plants is contributing to that, as is capacity expansion in five or six large southern plants.

Female slaughter ratio a fortnight ago reached a recent low of just 40pc, but rose somewhat to 45pc last week.

Currency wise, the Aussie dollar snuck up a little overnight, hitting the high US62s, up more than a cent over the past week. Even so, currency remains strongly in Australian beef exporters favour, as outlined in this earlier story.

 

 

 

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