DIRECT consignment slaughter cattle grids appear to have found a level of stability this week, after earlier sharp rises in northern and some southern parts of the country.

Queensland grids leapt 30-40c/kg in places earlier this month, although some have since contacted by 10-20c/kg again.

Part of that was driven by strong southern processor competition for cattle north of the Queensland border, but the rise in northern processor prices appear to have reduced the appetite for some southern processors to purchase northern cattle this week.

Additionally, some southern processors have scheduled annual maintenance closures this week or next, reducing requirements for a short period. Another large Victorian operator has dropped around 1000 head from its weekly roster, with local southern mid-winter cattle supply currently very tight, Beef Central was told.

The earlier over-the-hooks price rises recorded in Queensland did serve to push vendor interest higher, and many Queensland processors are now reporting decent bookings now held through to mid-August. Some large runs of western and northern cattle from the start of second-round musters have helped fill some large slots.

Some processors in the region will miss a day’s kill over the next fortnight due to Brisbane Show (or nearby local agricultural show) holidays.

Competitive quotes from processors in the southern Queensland region this morning suggest prices on good heavy cows are currently at 530-540c/kg and 590-600c/kg on four-tooth grass ox, with an implant. Some grids in the region still have Jap ox at around 570c.

Some of those figures are down 20c/kg on last week, on heavier supply, while others remain unchanged, at this point.

Reflecting current very tight supply in southern states, eastern regions of South Australia are 600c/kg this week on good boner cows and 650c on four tooth ox, while southern NSW grids seen this morning have four-tooth ox on 650c/kg (no HGP is mostly quoted in southern states) and good heavy cows 590c/kg.

The cupboard is completely bare in terms of killable cattle supply in some parts of southern Australia at present – hence the strong presence of Victorian and southern NSW processors in Queensland since late April. Naracoorte weekly sale this morning, for example, yarded barely 350 cattle, and there’s much the same on offer at Mt Gambier tomorrow.

Mid-winter kills steady at around 140K

The national slaughter for the seven days ended Friday sat at 139,788 head – down about 1500 on the week before, but remaining in the reasonably narrow band around 140,000 where it has sat since mid-May.

Predictions back at the start of the year suggested a ‘natural threshold’ around 140,000 head per week this year due to processing labour challenges – and to this point, at least, that forecast has proven remarkably accurate.

Some seasonal plant closures of a week or more for annual maintenance may take some numbers out of southern states kills this week and next. But solid production numbers out of Queensland, which have remained within a range from 72,000 to 74,000 head since mid-May, will help offset any brief decline in southern states.

Saleyards trends

Most southern physical sales staged early this week showed the effects of mid-winter on volume and quality.

Gunnedah sale this morning yarded 1890 head, up a little on last week. Despite good follow up rain over the weekend producers took advantage of the strong markets. Not as many cows were penned this week while there were limited supplies of well finished grown cattle. In the cow market the secondary and medium weights sold to cheaper trends while the better conditioned heavyweights saw a dearer trend of as much as 10c/kg.

Wodonga sale this morning yarded 900, down 150 on last week. Quality was very plain making it difficult to quote accurately.  The  market was erratic at times as buyers tried to pick their way through the  limited stock, looking for finish and shape. In the export market competition was weaker with aged steers helping drag prices back. Heavy steers sold from 310-368c/kg. Bullocks were limited and prices dipped 38c making from 322-334c. The mixed quality offering of cows met a small field of buyers, with competition weaker. Heavy cows traded from 292-336c/kg. The leaner D2 and D3 cows under 520kg sold from 216-285c/kg.

Wagga sale yesterday yarded 3300, up a couple of hundred. The big standout of the sale was the lack of weight once again. Export processors were subdued and not nearly as keen as the previous market. Well-finished cows were well supplied however competition at times was patchy resulting in prices weakening 12c/kg. Heavy cows sold from 302-339c/kg, while leaner types made from 260-308c. Heavy steers and bullocks were in limited supply, and despite this prices came off the boil 12-20c, fetching 330-382c.

A preliminary report on this morning’s Roma sale showed a yarding of 7848 including 2500 cows, down 1200 on last week. At the time the interim report was filed, the market was slightly dearer for most descriptions. Yearling steers 330-400kg had the most improvement topping at 404c/kg. Yearling steers 400-480kg sold to 392c, while grown steers +600kg made to 314c. Full Roma report tomorrow.