AS direct consignment slaughter cattle bookings continue to extend under heavy supply, many export processors across Eastern Australia are now offering space bookings only for slaughter stock, with prices to be negotiated with each vendor closer to scheduled processing date.

It makes over-the-hooks pricing a little harder to pin down, as plants extend space bookings well into June and even July in some cases.

If it’s any consolation to producers, the current congestion for kill space may look worse than  it actually is, because of ‘phantom’ bookings. In past drought cycles (2014 and 2019, for example) during times of heavy turnoff like this, some producers (difficult to tell how many) have hedged their bets by booking space at more than one plant, for the same line of cattle. When the time comes a couple of weeks out from proposed kill date to establish a price, they drop out of one (or more) of the bookings.

Effectively, that means some spaces may open up for others, sooner than they otherwise might expect.

The Mexicans are back

The long anticipated arrival of southern processors in Queensland has happened, with operators including Midfield, O’Connors, Australian Meat Group and others turning up at sales last week. The growing shortage of heavier, well-finished cattle in southern zones is the motivating factor, with 30-40c/kg freight bills to get them home apparently no deterrent.

Numbers accumulated at this point aren’t large, but its only a matter of time before the southern buying competition starts to be reflected in offers from Queensland and northern NSW processors, keen to protect their patch. Other cattle have been sold out of the paddock over the scales at centres like Morven and Blackall over the past week, destined for southern plants.

Grids show softer trend

Southern Queensland slaughter grids are showing a softer side this week, as the booking schedule pushes further out, well into June in most cases (as deep as mid-July for some plants further north).

The general view is the wait list is now as long as it has been since the dark days of continental-scale drought in 2019.

Most recent competitive grids for kills in southern Queensland for June, week one, have good heavy cows on 540c/kg (back another 10-20c on last week) and 620-630c on four-tooth grass heavy ox.

Central Queensland plants this week are generally 10-20c behind those rates.

One of the confounding features of Queensland slaughter cattle market at present is why supply is so strong – especially after some big saleyards price falls over the past fortnight – when most producers have a big body of feed in their finishing paddock.

“They need money,” was the simple answer from one works livestock manager this morning. “They are selling for cash-flow reasons, with end of financial year now on the horizon, and some were held up with disposals earlier by flooding and the cyclone.”

In southern states, kill spaces are also rapidly filling up, with one plant in the eastern region of South Australia booked through to the start of July. The most recent active grid in the region had 590c/kg on best cows and 670c on four-tooth ox. Southern regions of NSW show a similar supply pressure, with cows well down at 550c/kg and grass steer 690c.

It’s worth noting that as body condition drops away, processor profitability declines, as it costs the same to slaughter, bone and pack a 310-320kg cow as a 260kg animal.

Saleyards pressure continues      

In the saleyards channel, large yardings have continued in southern states, with quality, finish and weight all showing the effects of the season. Cows saw prices impacted sharply in some centres.

There was another bumper yarding at Wagga yesterday, with 8610 head falling just short of the previous week’s yards record. As the big dry sell-off continues, numbers fell short of the expected 10,000 head. A big group of buyers was present, most holding restocker and feedlot orders from the north. However, young weaners experienced a price correction, generally dipping by 20c to 37c/kg. Agents offered 2280 cows with every weight and grade represented. Heavy cows sold to subdued demand from Victoria resulting in a price drop of 17c, with the bulk selling from 264-286c/kg. The middle run of leaner cows under 520kg were supported by restocker interest, making 200-269c/kg.

Wodonga sale this morning yarded 2200 head, similar to last week, with cows once again accounting for half the offering. Quality was mostly  secondary with a lot of clean up lots in the mix. The market was weaker over most categories. Export cattle were in short supply across steer categories and limited supply distorted price trends. Heavy steers and bullocks sold from 310-370c/kg. Cows in all classes were hit by a price correction. Heavy cows fell 25c and traded between 260c to 285c/kg, while the D2 and D3 cows under 520kg sold to erratic bidding making from 166c to 248c/kg. Store cows were in bigger numbers making from 100c/kg to 292/c/kg. Heavy bulls sold at varying prices, the bulk of heaviest types making from 277c to 292c/kg.

Gunnedah sale this morning yarded 2205 mixed quality cattle, down 9pc on last week. Trends varied with well bred yearlings remaining firm to cheaper and heifers showing much of the negative changes. Heavy grown heifers back 18c/kg making to 250c/kg. Cows resulted in a cheaper market with heavy three and four scores down 23c/kg selling 230c to 270c/kg.

Roma sale this morning drew for about 7200 head. Full report tomorrow.

• There was no NLRS weekly slaughter report available by the time this item was published. Results will be added here later.