There’s been a large and somewhat unexpected surge in Queensland direct consignment slaughter grid prices this week – in some steer examples reaching levels not seen since February last year.

Competitive processors in southern and central parts of the state have lifted cow and grass export steer prices by 20-30c/kg since Friday.

Southern Queensland grids seen this morning now have heavy boner cows 550-560c/kg, and good export weight four-tooth grass ox now at 620-630c. That’s added another $90 to the value of a good fat cow and around $100 to a grass ox 330kg. Compare this with prices only a month ago, when grass four-tooth ox were still making 590-600c and cows 520-530c.

Central Queensland plants are typically 10-20c behind those rates this morning, and North Queensland another 20c behind that.

Four main factors appear to be involved in the jump in QLD over the hooks offers:

The first is another rally by Queensland processors determined to limit purchasing opportunities in Queensland by southern states processors, who are faced with a sizeable freight bill to get cattle home for processing. Victorian and southern NSW processors have been prominent buyers across Queensland for the past five months, via saleyards and direct purchase out of the paddock. The latest price rise appears to have reduce the appetite, at least, among some southern plants trying to raise a kill while numbers are very limited at home.

The second is evidence of some processors being caught short, with earlier space bookings on paddock cattle (e.g. no price attached) heading into September, which have ultimately failed to convert into an agreed price when the time for negotiation arrived. That’s left some Queensland kill rosters looking a lot more ‘toothy’ than they appeared only two weeks ago.

Since widespread rain earlier in August, producers in Queensland’s ticky country have pulled back in supply, with a greater proportion of slaughter cattle now coming out of the interior ‘clean’ country. Those tick-free cattle are of greatest interest to southern processors for logistical reasons, putting more demand pressure into the equation.

Another factor may be the extraordinarily warm end to winter, which, following earlier rain, is already putting a green tinge into many paddocks in Queensland and other parts of eastern Australia. That may have encouraged some vendors who were earlier planning to sell some cattle to change tack, and look for extra weight for sales later in the year.

In southern states, grids are largely unchanged but still considerably dearer than Queensland rates, reflecting seasonal supply.

Competitive direct consignment quotes from processors in the eastern regions of South Australia are 610c/kg this week on good boner cows and 660c on four tooth ox – both up another 10c/kg – while southern NSW grids seen this morning have four-tooth ox on 660c/kg (no HGP is mostly quoted in southern states) and good heavy cows, unchanged on 590c/kg.

Saleyards numbers lower

Rainfall in some southern Australian areas has limited saleyard numbers this week, adding to the supply issues.

In the saleyards channel, most yards operating early this week, with the exception of Gunnedah, trended lower in offering size. Some big money was paid for good cows yesterday and today, with some sales 340-350c/kg liveweight.

Wagga sale yesterday yarded 2090, down 1100 on last week due to rain. Cows were highly sought after, due to a reduced offering of 375/head. Well-finished cows traded from 322c and 359c/kg, with most sales above 349c. Because of the limited supply of leaner grades prices improved 7c. The majority of D3 cows under 520kg made from 277c to 315c/kg. Heavy steers and bullocks were in limited supply, which resulted in a price hike of 23c for bullocks fetching between 366c and 403c/kg.  Heavy steers to the processors lifted 10c to average 374c/kg. Heavy heifers with good shape attracted stronger competition with prices jumping 17c the heavier heifers making from 310c to 368/kg.

Gunnedah yarded 2250 this morning, up 800 on last week, as the yards become more accessible following earlier wet weather. There were large numbers of young cattle, not many exports while cows were in fair supply. Heavy grown steers sold to a slightly dearer trend for a slight drop in quality. The overall quality of the cows on offer was not as good as the previous sale and this was reflected in price. Heavy cows sold from 310-335c, averaging 321c, with lighter offerings mostly 305-329c.

There were only 820 head yarded at Wodonga this morning. Cows were once again highly sought  after. In the export market  the lack of numbers distorted price trends. Bullocks and steers sold to a small group of buyers with prices ranging from 329-385c/kg. The smaller offering of cows encouraged buyers to step up for all weights and grades and prices lifted as the sale progressed. Heavy cows rallied 22c selling from 326-368c/kg, with leaner grades from 268-322c/kg.

While Roma store sale was still in progress as this report was posted, an interim report said the sale yarded 5900 head, down 700 on last week. The market could not maintain the levels of the previous sale, with heavy bullocks over 600kg topping at 325c/kg. Cows were yet to sell – full report tomorrow.

• There was no national weekly slaughter data available at the time this item was posted. Results will be added here when they arrive.