Growing southern processor competition and smaller yardings following rain have pushed slaughter cow prices sharply higher in eastern states saleyards over the past week, but bookings already held by processors have seen direct consignment cow prices resist the trend – for the time being, at least.

The NLRS processor cow indicator (beef cows +400kg, seven-day rolling average of 24 saleyards from Blackall and Charters Towers in the North to Mt Gambier in SA) has lifted 37c/kg liveweight in the past fortnight, today sitting at 279c/kg. Good cows in some southern Queensland yards went from 280-285c to 300-310c in a week late last month, or the equivalent of 565-580c over the hooks, given a 53pc dressing percentage.

What was clearly evident was the contrast in cow prices movements between Queensland saleyards yards in ticky areas, and those tick-free (simplifying access for southern processors). Yards like Warwick, Roma and Dalby all showed biggr cow price gains than those in the ticks, because southern processors can simply ‘load and go.’

After a brief recess last month before rain arrived, southern processors are again operating strongly this week in saleyards and out of the paddock in the northern regions of NSW and well into Queensland. A similar trend was seen for long periods last year, helping put a floor in competition for slaughter-weight cattle.

So far, at least, Queensland slaughter grids have not reflected the recent saleyards cow trend. Large multi-site processors’ over the hooks grids remain unchanged this morning on last week, and in some cases, the week before, with strong forward bookings still a factor.

Competitive processors in southern parts of the state are today offering on 530-540c/kg on good heavy cows, and grass four-tooth ox 600-610c/kg. Some are still taking space bookings only, with prices to be negotiated close to kill date. Isolated cow offers from further south into NSW may be as much as 580c, but that’s unsubstantiated.

Central Queensland operators are mostly 10-20c/kg behind those SQ rates.

Some processors are now less forward on bookings than they were this time a month ago, while other are still well accommodated through the remainder of June, with forward (mostly unpriced) bookings.

One Queensland cattle buyer contact said the phones weren’t ringing like they were earlier (pre-rain), meaning the forward space congestion was not as pronounced as it was earlier at his sites.

“Producers sometimes pull up (direct consignment supply) when there’s a bit of rain about like this, anticipating a rise in offers. It can become a bit of a stand-off – either the rain is significant enough to justify a price lift, or the producer after a while, accepts that it’s not going to happen,” he said.

“Most processors this week are in the position where they have some cattle secured in front of them – there’s no urgency, for them – it’s just the market.”

In southern states, some processors in southern NSW are not quoting this week, with plenty of cattle already on the books. In eastern parts of South Australia, grids this week are unchanged on last week, showing 610c on heavy cows and 690c on four-tooth grass ox. A southern NSW specialist cow operator this week has 600c/kg on heavy cows +300kg, and 590c on cows 275-300kg. Both are for delivery week commencing 16 June.

Rain impact

Weekend and earlier rain has caused some isolated cancellations and delays on slaughter cattle deliveries in different areas of eastern Australia, but nothing to be concerned about, several processors said.

As can be seen in today’s weekly rainfall summary, some solid falls of 25-50mm were received in parts of central and coastal southern Queensland, eastern parts of NSW, and a large footprint across the western half of the NT and Kimberley region.

A few large cull cow consignments out of Northern Australia have been postponed, but only for a few days, apparently. Others lost around Central Queensland will be re-scheduled for later this week, one operator said.

“We’ve still got cattle booked a long way forward, so any supplier who we offer an earlier slot to, due to rain delays on other cattle, is jumping at it,” one CQ plant manager said.

A rise in the value of the Aussie dollar versus the greenback, due to a softening in the US currency, has taken the edge of grinding meat values last week, with 90CL frozen imports quoted at A$10.48/kg CIF on Friday. Imported US manufacturing beef prices have softened over the past month, but it should be remembered that they had never before gone above A$10/kg, until December last year.

Processor margins squeezed

Beef processing margins have declined in April, a recent analysis by Ep3’s Matt Dalgleish found.

“The story of early 2025 is becoming increasingly defined by rising livestock input costs that are not being matched by sufficient returns from the sale of beef, either domestically or abroad,” he said.

“Cattle prices have continued to firm, reflecting growing producer benefit, particularly in northern regions where seasonal conditions may have supported some herd rebuilding activity.”

Since the beginning of the year, heavy steer prices had increased by 4.7pc, young cattle by 7.5pc and processor cow values by 4.8pc, Mr Dalgleish said.

“These movements are compressing processor margins at a time when their ability to offset such costs through improved beef prices remains constrained,” he said.

Export markets, a cornerstone of processor revenue, had not delivered the uplift required to compensate for elevated procurement costs.

“Despite some positive signs in March, the broader trend across Australia’s key trading partners has been underwhelming. Average beef export prices to the US have slipped by 0.8pc since January. Japan has edged up just 0.8pc, while South Korea and China posted more encouraging gains of 4.1pc and 2.8pc respectively,” Mr Dalgleish said.

On aggregate, Australian beef export prices to the four largest markets had increased by only 1.6pc, falling well short of the 6pc lift in average livestock input costs borne by processors over the same period.

“Domestic markets have offered little relief. Retail beef prices rose just 1.5pc over the first quarter of 2025, reinforcing a picture of steady but uninspired demand,” Mr Dalgleish said.

“This sluggishness limits processors’ ability to pass through higher wholesale prices to retailers, further squeezing profitability. Meanwhile, operational costs have continued to edge higher. Manufacturing input costs into the food sector lifted by nearly 5pc in the first quarter ended March, reflecting broader inflationary trends. Utility charges and labour costs, though more stable, still rose by close to 1pc, adding to the accumulation of margin pressure.”

Taken together, these dynamics paint a challenging picture for the processing sector. With livestock input costs rising more than three times faster than export returns, and domestic markets offering limited pricing power, the drop in the BPTC index to 51% is a direct reflection of the financial stress now facing processors.

Saleyards trading

The recent strengthening in cow prices continued in most large saleyards selling centres early this week.

Wodonga yarded 1960 this morning, up 660 on last week, with the cow run numbering almost 1200. Grown steers were again limited and most of the grown heifers were lacking weight. The cow were mixed in quality but there were plenty of heavyweights and good numbers of lean processing cows. The market was firm to dearer. Trade cattle were firm to 5c dearer with the medium and heavy trade steers ranging from 360-419c and heifers most sold from 350-370c with a top of 418c/kg.   Grown steers and bullocks ranged from 348-385c and the prime grown heifers 354-383c/kg. Medium weight score 2-3 cows were dearer selling from 212-300c and 3s and 4s heavy weights were firm 280-341c/kg.

Gunnedah yarded 1700 this morning, slightly down on last week. Exporters were very active with an extra operator present. The cow market sold to dearer trends, while other cattle were mostly cheaper. An extra buyer pushed heavy grown steers and heifers to a dearer trend. Processor steers 370-395c/kg and heifers 304-345c/kg. The cow market dearer throughout heavy three and four score cows 16c/kg better 260-349c/kg.

Roma sale this morning yarded 4649, down almost a thousand on last week. A full report will be issued tomorrow, but an interim summary described a mixed quality yarding with western and local bred cattle. The market was similar to last week’s sale, although cows were yet to sell. A small number of heavy feeders topped 386c/kg. Yearling steers over 480kg sold from 316-352c/kg to processors. Grown steers 500-600kg made 330c/kg.

• Eastern states weekly slaughter statistics for the week ended Friday were not available the time this item went to press. Data will be added here when it arrives.