FOUR or five key factors appear to be driving a sharp rise in direct consignment grid prices being offered by some Queensland export processors since Friday.

Generally speaking, direct consignment cattle activity is slowing down, after some heavy supply pressure earlier.

Several competitors have lifted heavy cow prices by as much as 40c/kg this week, taking offers in southern parts of Queensland back to 670-680c/kg this week. Some of those cow grids were as low as 640c this time a week ago.

Some of that, at least, is some ‘catch-up’ in some competitor’s grids to better align with companies that lifted rates earlier.

Four-tooth grass heavy steer rates on some southern Queensland grids have also lifted by 30-40c in southern Queensland, back to 755-760c in some offers (765c available on some grids for no HGP).

Similarly, some Central Queensland offers have also risen over the past seven days – typically 20c/kg, with cows now 630c/kg in some offers and steers 720c.

The widening over-the-hooks price gap between Southern and Central parts of Queensland suggests that CQ is better supplied this week, with local cattle starting to open up in availability as winter approaches. Typically the difference between the two regions is 10-20c, but is as much as 30-35c this week.

The main factors behind the recent direct consignment price rises appears to be:

• The current encouraging forecast of moderate rain +15-25mm across some large patches of Eastern Australia through to the end of this week (see seven day BOM map below)
• A general slow-down in supply as cattle producers servicing Queensland plants reacted to the series of earlier downward price moves, preferring to sit on the sidelines for a period. For those liquidating cattle due to dry conditions, they have now more or less completed that cycle
• General strengthening in saleyards prices this week, on the back of some smaller yardings
• The vigorous return of southern processors seeking slaughter cattle supplies out of Queensland – either paddock or saleyards – as local supply tightens and more moderate diesel prices this week make the freight component a little more palatable.
• Cash flow: Producers who offloaded some cattle earlier at higher prices for cash flow reasons have now got the bank manager off their back, and are prepared to hold until closer to mid-year.

Southern states offers

Direct consignment pricing in southern states this week shows few, if any changes on last week, after some rises in late April.

Best offers seen this morning in eastern parts of South Australia include 850c/kg on four-tooth grass ox and 750c in eastern parts of South Australia, up 20c, partly due to lower supply of cheaper cattle out of dry areas of NSW. Another SA grid has lifted MSA-type cow money from 760c to 780c/kg this week, and 880c on MSA grass yearling steer.

Southern NSW plants this week are so far unchanged, with 820c on four-tooth grass ox. Some southern NSW plants are currently not actively quoting, being will covered until the early stages of June.

Saleyards

The general price trend in saleyards early this week is higher, on the back of some smaller yardings in some centres.

Gunnedah yarded 3980 this morning, down 1200 on last week. It was a mixed quality yarding predominately made up of cows, weaners and yearling type cattle. All major buyers were present with light cattle to the restocker cheaper, however all grades of cows as well as prime heavy cattle were dearer. Prime heavy cattle to the processor improved in quality and price to range between 357c and 468c/kg. Cows were 15c to 25c dearer across the board, with score 2s and 3s making from 244c to 334c/kg. Prime heavy cows made 322-375c to average 351c/kg.

Tamworth yesterday offered 3958, down 2100 on last week. It was a fair quality yarding heavily represented with cows however most grades were on offer, selling to an overall dearer market. Yearling steers and heifers to feed were both 20c dearer. The steers made between 450c and 528c to average 482c/kg while the heifers ranged between 394c and 479c/kg. Prime grown cattle to the processor improved on quality as well as price. They ranged from 290c to 458c/kg. Cows were 25-35c dearer across the board, with score 2s and 3s making from 264-332c/kg. Prime heavy cows made 300-368c to average 350c/kg.

Roma yarded 5666 this morning, up about 900 on last week. The yarding consisting of prime conditioned bullocks and feeders, with 1500 cows with a larger offering of prime cows which sold to a dearer trend. Yearling steers 400-480kg made to 480c to restockers and lotfeeders. Grown steers 500-600kg sold from 440c to 470c/kg, bullocks +600kg made from 410c-428c/kg to processors. The score 3 cows topped 390c to average 358c/kg, while score 2s 400-500kg sold from 220-340c/kg with the plainer cows selling from 140-270c/kg to restockers.