The Argus Australian northern steer price rose by 9A¢/kg to 393A¢/kg this week. Feeder cattle supply is easing as graziers retain stock on winter forage to reach heavier weights, capitalizing on stronger returns and avoiding high replacement costs. Heightened demand from southern Australia feedlots is also intensifying competition.
Crossbred saleyard and feedlot prices ranged between 380-412A¢/kg. Feedlots are contracting cattle for August, relying on backgrounded and company-owned stock to maintain throughput amid tightening supply. A major southern Queensland feedlot purchased 108 oat-finished Santa Gertrudis heavy feeder steers from the Dalby cattle sale on 16 July for 408A¢/kg. Brahman-infused cattle from northern pastoral properties are in plentiful supply and presenting in excellent forward condition, with southern Queensland feedlots offering 350A¢/kg. Pregnancy-tested empty heavy feeder heifers sold at the Dalby cattle sale for 371A¢/kg, while local feedlots are offering 350A¢/kg. A total of 1,214 head sold at a special feeder sale in Roma on 11 July, with prices averaging 412A¢/kg for crossbred steers and 331A¢/kg for crossbred heifers, with local and southern feedlots the highest bidders.
The growth of winter forage and grain crops, which has stalled from dry, cold weather could be assisted by forecast rain of up to 15mm on 17-18 July in southeast Queensland and northeast New South Wales (NSW). Further forecast precipitation across southern Queensland and most of NSW next week could also raise winter crop yields and encourage winter herbage growth in pastures. While forecast rainfall is largely excluding central Queensland, graziers have sufficient quality pasture available.
The Argus Angus steer price rose by 13A¢/kg to 493A¢/kg this week. Saleyards and feedlots priced Angus cattle at 485-500A¢/kg. Feedlots are contracting cattle for August. Southern feedlots are continuing to purchase cattle in the paddock and at saleyards across northern NSW and southern Queensland because of drought.
A pen of 63 Angus steers from Warialda, with an average weight of 445kg, sold online on 11 July for 496A¢/kg. A pen of Angus heavy feeder steers at the Dalby cattle sale on 16 July sold for 476A¢/kg. Feedlot offers for Angus feeder heifers are between 410-420A¢/kg.
The Argus Angus steer price has risen by 34A¢/kg in the past three weeks because of tight supply as winter progresses.
The price spread between the Argus Australian northern feeder steer and the Argus Australian northern feeder Angus steer is now 100A¢/kg. Many feedlots are reporting a 100A¢/kg difference between their offers for crossbred and Angus steers. The price spread is rarely seen, most market participants say, but the value difference is 23pc.
While export demand is firm, the high prices being paid for Angus feeders are becoming unsustainable, meat traders said.
