The prospect of some rain disruptions to beef processing have arisen, particularly in southern parts of the continent look likely over the next seen days, with BOM forecasting 25-50mm of rain in eastern parts of Victoria and NSW, and creeping into southern Queensland. Most of that influence is likely over the next four days, BOM says (see map)
Benefit will likely come mostly in cropping areas, but any heavier falls could have some impact on slaughter cattle supply for a week or two, processors say.
Direct consignment quotes for slaughter cattle have been reasonably stable this week, with the exception of a few grids in southern Queensland and eastern regions of South Australia which have reduced rates by 10-20c/kg since Friday on some categories.
In Queensland that’s primarily in response to a lift in supply, although quite a lot of committed cattle over the next few weeks appear to be space-bookings only, without a price attached.
Central Queensland grids remain unchanged this morning, suggesting any improvement in supply is limited more to southern parts of the state.
Competitive processors in the southern Queensland region are this morning offering 530-540c/kg on good quality heavy cows, and anywhere from 600-620c on four-tooth grass heavy steer, with implant.
Central Queensland plants are this week typically 10-20c behind southern Queensland, but worth noting that for one large processor, its plants in central and southern parts of the state are identical this week, due to the drop in the south.
In southern states, some direct consignment grids have been adjusted downwards 10-20c this week, on top of another 10c/kg fall last week, as tightness in local supply starts to ease.
Offers seen this morning in southern NSW showing cows now 550c and four-tooth grass ox no HGP 630c. Eastern regions of South Australia are also back 10c this week in over-the-hooks quotes, with offers seen this morning of 640c/kg for four-tooth heavy grass ox and 590c/kg on good boner cows.
Victorian and southern NSW processors continued to operate strongly in Queensland over the past week, extending much later into the year than is traditionally the case in northern regions. It’s been the case right through the winter months, but to see the large southern processors like Midfield, AMG, Ralphs and others continuing to purchase northern cows and steers until close to October has never been seen before.
Saleyards channel
Physical cattle sales held early this week have seen numbers offered rise in some large selling centres.
Wagga sale yesterday yarded 5100, up about 30pc on last week, due mostly to dry conditions. Not all export buyers attended the sale, which led to a decrease in competition across all export classes. The market sold to mixed results with, export classes selling to significantly weaker price trends. During the export sale, the market struggled to gain traction, resulting in heavy steers 500-600kg selling 20c cheaper to average 342c/kg. Bullocks also experienced a decline, dropping 13c to range from 300-380c. The cow market also mirrored this downward trend, falling by 20-38c particularly impacting lighter, leaner types. Heavy cows sold from 300-336c with price rarely hitting 330c/kg.
Gunnedah sale this morning lifted 400 head to 3100. Females again dominated supply. Demand for well finished heavy cattle was not as strong with both the heavy grown steers and heifers to process selling to cheaper trends. Market trends were cheaper for the most part through the cow market where an odd sale remained firm.
Roma yarded 8500 this morning, up about 25 percent on last week. A preliminary report (sale still in progress as this report was posted) said the market could not maintain the levels of the previous sale. Yearling steers 330-400kg made to 386c with the 400-480kg also making to 386c/kg. Bullocks +600kg sold from 310-338c/kg. Full Roma report tomorrow.
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