THE feeder market is continuing its run of strong prices, with grids holding firm at 2022 levels and forward contract prices going up to accommodate the cattle prices.
400kg+ flatback feeder steers on the Darling Downs were this morning being quoted between 530-550c/kg – which is similar to the last feeder market update. One large lotfeeder was not quoting and there was talk of another dropping its price this morning.
November forward contracts for 100-day grainfed cattle in Queensland are sitting at 900c/kg carcase weight, which at least one buyer thought was a new high.
A wide range of prices was given for Angus feeder steers. The north is said to be hovering around 600c/kg and the south is anywhere between 585-620c/kg.
Southern crossbreds (no indicus) have been quoted between 560-570c/kg.
Brand programs are said to be a big driver of the higher prices, with some bigger operators doing what they need to keep their contracts filled. One buyer told Beef Central that there are a lot of lotfeeders who are not able to go with the current market and will likely come in if prices drop 10-20c.
Numbers are starting to come forward, with 11,800 on the draw for the Roma saleyards tomorrow after a similar yarding last week.
The yard not quoting this week says it is currently working through some big runs of cattle and a southern buyer said he was getting plenty of numbers on a 600c grid. He said plenty of producers were weighing early and tapping into the cash flow while the prices were good.
Saleyard prices firm-cheaper
The saleyard based feeder steer indicator has dropped 15c in the past two weeks, opening this week at 539c/kg. The heavy 400kg+ end of the indicator dropped 6c last week to average 553c/kg.
Heavy feeder prices held steady at this morning’s Wagga sale, with 438 head averaging 566c/kg. National Livestock Reporting service report Leann Dax said demand strengthened as the sale progressed.
“Feedlots showed a strong preference for Angus-bred steers and heifers, with buyers prepared to pay a premium for large runs of vendor-bred stock,” she said.
Heavier feeder steers sold well at the Tamworth sale, with cattle under 400kg cheaper. A sample of 143 heavy feeder steers averaged 586c/kg.
More numbers expected to come online later this year
While supply is tight in the south, there is an expectation that there will be plenty of cattle getting to feeder weight around September – with both vendor-bred lines and traders that were bought from dry parts of Northern NSW earlier this year.
One southern lotfeeder told Beef Central that most yards are doing what is needed to get through the next couple of months before numbers come online later this year.
“We would normally buy a few backgrounders to have around us, but there doesn’t seem to be much point this year,” he said.