Longfed cattle on feed at Lotte’s Sandalwood feedlot

FEEDER cattle prices have firmed in the past fortnight on the back of widespread rain across the north.

Feedlot buyers who spoke to Beef Central this morning said the price of 400kg+ flatback feeder steers out of the paddock was hovering around 380c/kg in the north – which is up 10-20c/kg on the past fortnight.

Southern markets appear to have remained steady, with one multi-site, multi-state lotfeeder telling Beef Central that heavy flatback feeder steers were making 370c/kg. Angus quotes are also similar to recent weeks, ranging from 390-395c/kg.

Meat & Livestock Australia’s saleyards-based Feeder Steer Indicator saw an increase in prices, opening last week at 346c/kg and closing at 352c.

The addition of today’s Wagga sale saw the indicator push up to 360c/kg.

According to the National Livestock Reporting service, the Wagga sale was well attended by both Riverina and northern feedlots. Numbers of 400kg+ feeder steers were down, however, average prices increased by 21c.

Welcome rain in the north

Most of the change in the market has happened in Qld, where rain has no doubt been welcomed in some drier parts of the state – particularly the Central West.

Widespread rain has fallen in Queensland and New South Wales in the past fortnight, which has slowed the numbers of cattle coming to feedlots. Source: BOM

A fortnight ago, large numbers of cattle were being turned off from Western Qld into Southern Qld saleyards and through online and direct consignment channels. Forward contracts for 100-day cattle being delivered to processors in May were booked out quickly.

Most cattle heading to 100-day programs in feedlots this week would be looking at a June delivery to processors. Beef Central has heard June forward contracts have are the same as May at 690-700c/kg carcase weight.

Processing in May and June will be less interrupted than April, which is expected

While the rain has been enough to hold back some cattle from the West, there are still plenty of cattle around. With a good season in Southern Qld, some cattle are evidently getting to feeder weight quicker.

Parts of New South Wales are still dry, with storm rain passing through the northern half of the state in the past week.

StoneX expecting prices to soften

Forward pricing tool StoneX is expecting prices soften in the second half of the year on the back of higher cattle supply. StoneX currently has the market sitting 380c.

The StoneX Australian Cattle Swap forward curve, which shows the mid point between bid put on by potential buyers and offers by potential sellers.

One contract is locked in for August at 355c. Based on other bids and offers in the coming months, StoneX has the market hovering between 355c and 365c for the rest of the year.