AS often happens in a rapidly-rising market like this, saleyards slaughter cattle prices have pulled ahead of direct consignment values in comparative terms for the time being – despite some hefty 30-40c kicks in over-the-hooks grids in Queensland last week.

Some markets observers suggest slaughter cattle previously booked earlier with processors on space only (no price attached) have since been diverted into the saleyards channel to exploit the dramatic surge that has happened through the saleyards channel since late last month.

See more on the big surge in saleyards offerings below.

Plenty of selling centres in NSW, Victoria and southern Queensland have recorded good cows making 420c/kg or more liveweight since the start of June.

The NLRS saleyards processor cow indicator today sits at 386c/kg  – having risen a dollar a kilo from 293c only six weeks ago. Today’s cow indicator level was last seen briefly in November last year, before drifting lower over the next five months as heavy cows turnoff due to drought unfolded. With that cycle now over, cows are again in tighter supply.

Today’s Wodonga sale contributed almost 1000 cows to the NLRS processor cow indicator, averaging a remarkable 425c/kg liveweight – after recording a similar result last week.

The diversion of cattle into yards has in turn has left gaping holes in some processors’ kill rosters from week 28 starting 6 July, Beef Central was told this morning.

Processor buyers were active at Roma sale this morning, in some cases buying less desirable out-of-spec cattle they would normally walk past. One estimate suggested some of the mixed lines put together (lighter steers and cows through to better bullocks) would have averaged 860c/kg dressed equivalent, where thet stood.

Last week’s dramatic 30-40c/kg direct consignment price rises seen on Queensland have evidently had little real effect in filling kill rosters, processor contacts said.

“They’re sitting on their hands,” one contact said this morning. “Part of it is due to the end of financial year tax cycle, some of it is the feed on hand and not being under any feed pressure, and while ever the market keeps climbing, nobody wants to jump in too soon. They’re just sitting and watching – but once the market turns, the risk is they miss the change in the cycle, once bookings start to flow,” he said.

Grids steady

After last week’s big upwards movements, Queensland direct consignment grids appear unchanged this week.

Southern Queensland processor grids seen this morning show good quality heavy cows this week at 740-750c/kg, with heavy grass steer four teeth quoted as high as 820-840c/kg this morning.

Central Queensland supply is less challenged, with rates this week anywhere from 20-40c/kg behind competitors in southern regions of the state. However some individual private paddock deals have unfolded in CQ in recent days at rates much higher than that.

The lift in Queensland offers has not deterred southern processors from operating in the north this week, with Midfield, AMG and others still described as ‘very active’ in the market, with AMG buying lines of cows at Dalby last week at high values.

Further rain across parts of Eastern Australia this week has not interfered with slaughter cattle delivery commitments to this stage, contacts said.

In southern parts of NSW, some export processors have reasonable supply on hand, and have left grids unchanged from last week. Eastern regions of South Australia showed heavy cows as high as 800c on MSA-eligible cows this morning, +20c on figure seen only a fortnight ago, and four-tooth grass ox on 880c/kg up 10c from late May.

Saleyards bulging again

There have been sharp rises in offerings seen across Eastern states saleyards over the past ten days, in direct response to the dramatic rise in prices. Six weeks ago, yardings of this size were still due to drought, feed and water shortages.

Reflecting the price-driven surge in bookings, Gunnedah yarded 1973 head this morning, more than double last week’s numbers. It was a plainer condition yarding with limited numbers of prime cattle on offer. The market plateaued, with some grades of lighter cattle softer.  Prime grown cattle to the processor made from 420-440c/kg, with score 2 and 3 cows firm, making from 320-400c/kg. Prime heavy cows were slightly dearer, making 400-449c/kg.

Wodonga yarded 1500 this morning, similar to last week. Three quarters of the yarding was cows. Quality was fair to excellent with a good number of grainfed yearlings. The usual winter buyers made it to the sale, and all were wanting a market share. The market was very strong with grainfed cattle keenly sought. Heavy steers and bullocks were limited. Feeder steers medium weight sold from 470-513c/kg, while equivalent heifers saw prices lift by 52c, on account of quality with the better types making from 438-508c/kg. On the export side heavy steers and bullocks suitable for processors were few, making 426c-528c/kg. In the cow sale, bidding lost the intensity of last week with big heavy cows selling 5c easier. The bulk of the better heavy cows ranged from 412-450c/kg, while leaner cows less than 520kg and with some cover lifted 5c to average 403c/kg

Today’s Roma sale was talking 11,000 head, up about 3500 on last week as vendors react to the recent price direction. No preliminary report was filed by the time this item was posted. Full report tomorrow. There was no Tamworth sale yesterday due to the public holiday.