Australia northern feeder cattle: Cautious market

Spanish Market: Agriculture
25/05/23

The Australian northern cattle feeder price fell to 336A¢/kg this week from 348A¢/kg the week prior as processors continue downward pressure on kill prices, and producers panic sell and remain cautious to buy back in.

Feedlot pricing and saleyard results ranged from 325-355A¢/kg. Roma and Dalby saleyard numbers bounced back this week to 7,000 head and 4,000 head respectively.

Feedlots are concentrating on purchasing quality lines of cattle to gain optimal performance for 100 days in the pens, with no margin for non-performing cattle. High ration prices and downward trending processor kill prices is making feedlots look to gain peak cattle performance in average daily gains from quality in spec cattle. As a result, out of feedlot spec cattle and high Brahman content feeder cattle are copping major deductions in the current market.

Cattle trading conditions are currently ideal with weaner prices cheaper c/kg than feeder steers, but many comment that the market never stays at that way for long. It is a buyers market but some producers lack confidence with a dry outlook and barely enough oats crops just yet to get through the winter in southern Queensland and northern New South Wales (NSW).

As the end of financial year (EOFY) approaches on 30 June, many producers of both grain and cattle are waiting to push sales and earnings into next financial year, where a looming El Nino threatens to reduce profits. July could see some downward pressure on grain prices, if supply increases and international demand on Australian grain eases from highs earlier in the year.

After a long wet season mustering is in full swing in the north of Australia, with machinery on the go ensuring truck access and cattle movements. As cattle start to flow in the north there is potential for supply to out weigh demand for live cattle exports, with monthly export volumes yet to reach 50,000 head for 2023.

The Angus feeder steer price dropped to 413A¢/kg this week from 422A¢/kg the previous week. The Angus feeder market flipped quickly in the last week with many feedlots filling contracts for the next 2 months, now holding up on purchasing, while they digest cattle already procured. Concerns around a lack in supply of feeders through winter saw a spike in demand early in May, but these concerns have eased. Cheaper prices in NSW are also putting some downward pressure on northern prices.

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

06/05/24

Chuvas no Rio Grande do Sul alagam o estado

Sao Paulo, 6 May (Argus) — O estado do Rio Grande do Sul continua sendo afetado pelas fortes chuvas que começaram em 29 de abril, levando o governo a decretar estado de emergência em 2 de maio. Os maiores volumes de chuva atingiram as áreas centrais do Rio Grande do Sul, com cidades recebendo chuvas entre 150mm a 500mm, de acordo com dados da Empresa de Assistência Técnica e Extensão Rural (Emater-RS) do Rio Grande do Sul. A estação de monitoramento da cidade de Restinga Seca, no centro do estado, registrou o recorde de quase 540mm. As chuvas no Rio Grande do Sul superaram 135mm na maior parte do estado, de acordo com o Instituto de Meteorologia dos Estados Unidos (Noaa, na sigla em inglês). Enquanto isso, nas demais regiões do Brasil prevaleceu o clima seco. O NOAA espera que as chuvas diminuíam nesta semana, mas as condições climáticas adversas devem continuar. Até 3 de maio, 154 trechos de 68 rodovias estavam totalmente ou parcialmente bloqueadas, de acordo com a Defesa Civil do estado. A usina hidrelétrica 14 de julho, com capacidade de 100MW, também foi afetada e teve sua operação parcialmente rompida. O porto do Rio Grande não suspendeu as operações, porém a movimentação está mais lenta. Apesar das chuvas intensas, as taxas de demurrage e o tempo de espera para atracação e desembarque ficou estável em $1/tonelada (t) e os custos totais para a movimentação de fertilizantes permaneceram em $19/t. Porém, participantes de mercado esperam que a situação mude nos próximos dias, o que deve aumentar as taxas de demurrage. Se a chuva não parar e os níveis do Rio Guaíba continuarem subindo, é provável que algumas áreas do porto inundem nos próximos dias, como aconteceu no porto de Porto Alegre. Em meio a movimentação de carga mais lenta, dificuldades logísticas e a demanda para serviços de transporte de fertilizantes, que já estava baixa, o frete de fertilizante na rota Rio Grande-Dourados, monitorada semanalmente pela Argus, caiu em média R$20/t, para R$225-250/t. Excesso de chuva pode prejudicar safra de soja O Rio Grande do Sul está colhendo a safra de soja 2023-24, que deve ser a segunda maior do país nesta temporada. Os trabalhos alcançaram 76pc da área esperada no estado até 2 de maio, avanço de 10 pontos percentuais na semana, apesar do excesso de chuvas, segundo a Emater-RS. Os agricultores aproveitaram as janelas mais curtas de clima favorável— ou quando as chuvas diminuíram — para intensificar as atividades de campo, especialmente nas áreas em que eram esperadas produtividades maiores e que não foram profundamente afetadas pela seca no início do ano. Os níveis de umidade dos grãos colhidos são considerados acima da média e vão necessitar de mais investimentos no processo de secagem. Algumas áreas reportaram germinação prematura e queda das plantas em razão do excesso de umidade. A Emater-RS mantém a produtividade média do estado projetada em 3.329 kg/hectare (ha), com os resultados recentes permanecendo dentro das projeções anteriores, de acordo com o boletim de 2 de maio, divulgado semanalmente pelo órgão. Com isso, ainda é esperado que a produção de soja do Rio Grande do Sul alcance o recorde de 22,2 milhões de t. No entanto, participantes de mercado concordam que as projeções para o estado devem cair nas próximas semana, uma vez que os estudos de campo começam avaliar com precisão os prejuízos causados pelo excesso de chuvas. Por João Petrini, Maria Albuquerque e Nathalia Giannetti Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Floods halt firms' operations in Brazil's south

06/05/24

Floods halt firms' operations in Brazil's south

Sao Paulo, 6 May (Argus) — Several Brazilian companies have suspended operations in the southern state of Rio Grande do Sul because of heavy rainfall that has caused severe floods and infrastructure damage. Flooding from the record rains has left at least 83 dead with 111 people missing, according to the state government. More than 23,000 people have been forced from of their homes amid widespread damage, including washed out bridges and roads across several cities. The dam of the 100MW 14 de Julho hydroelectric plant, on the Antas River, ruptured last week under the heavy rains . Power generation company Companhia Energetica Rio das Antas, which runs the plant, implemented an emergency evacuation plan on 1 May. Brazilian steelmaker Gerdau said on Monday that it suspended its operations in two mills at the state until it can ensure "people's protection and safety." The company did not disclose the produced volume of steel at those two mills. Logistics company Rumo partially interrupted operations and said that "damages to assets are still being properly measured". Petrochemical giant Braskem shut down its facilities at the Triunfo petrochemical complex as a preventive measure because of "extreme weather events" in the state, it said on 3 May. The company added there was no expected date to resume activities there. Braskem operates eight industrial units in Rio Grande do Sul that make 5mn metric tonnes/yr of basic petrochemicals, polyethylene and polypropylene, according to its website. By Carolina Pulice Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Fire hits Vance Bioenergy's Pasir Gudang facility

06/05/24

Fire hits Vance Bioenergy's Pasir Gudang facility

Singapore, 6 May (Argus) — A fire broke out at Malaysian biodiesel producer Vance Bioenergy's Pasir Gudang facility in southern Johor today, but did not affect biodiesel production, said sources close to the company. Some auxiliary products were affected, a source said but declined to name them because of commercial sensitivity. The cause of the fire is still under investigation. Vance Bioenergy produces biodiesel for the Malaysian and European markets, but there has been limited market reaction to the news so far. The company has a total biodiesel production capacity of 450,000 t/yr, with 300,000 t/yr at Tanjung Langsat and 150,000 t/yr at Pasir Gudang. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Heavy rainfall floods Brazil's Rio Grande do Sul

03/05/24

Heavy rainfall floods Brazil's Rio Grande do Sul

Sao Paulo, 3 May (Argus) — Brazil's southern Rio Grande do Sul state continues to flood after heavy rainfall since 29 April, leading the government to declare an emergency yesterday. The highest volumes reached the central areas of Rio Grande do Sul, with cities receiving rainfall of 150-500mm (6-20 inches), regional rural agency Emater-RS data show. The monitoring station of Restinga Seca city, in the center of the state, recorded rainfall of about 540mm. Rainfall in Rio Grande do Sul overall surpassed 135mm in most of the state, according to the US National Oceanic and Atmospheric Administration (NOAA). Meanwhile, dry weather prevailed in other Brazilian regions. NOAA expects rainfall to abate in the next week, but adverse weather conditions are set to remain. As of today, 154 sections of 68 highways were totally or partially blocked, according to the state's emergency service. The 100MW 14 de Julho hydroelectric plant also partially ruptured . The Rio Grande port has not suspended operations, but handling is slower. Despite the heavy rainfalls, demurrage rates and waiting queues for docking and unloading were not altered. Demurrage rates were stable at $1/metric tonne (t) and the total cost for handling fertilizers remained at $19/t. But market participants expect the situation to change in the coming days, which may increase demurrage rates. If the rain does not stop and the level of the Guaiba River continues to rise, some areas in the port are likely to flood in the coming days, as is the case in part of the Porto Alegre port. Amid slower cargo release, logicitical difficulties and the already-low demand for fertilizer transport services, fertilizer freight rates on the Rio Grande-Dourados route, monitored weekly by Argus , fell by R20/t ($4/t), on average, to R225-250/t. Excessive rainfall to damage 2023-24 soybean crop Rio Grande do Sul is harvesting its 2023-24 soybean crop, set to be the second largest in the country this season. Works reached 76pc of the state's expected acreage by 2 May, posting an weekly advancement of 10 percentage points despite the excessive rainfall, according to the rural agency Emater-RS. Farmers seized shorter windows of more favorable weather — or when rainfall subsided — to intensify field activities, especially in areas expected to register higher yields and that were not deeply affected by a drought earlier in the year. The moisture levels of grains harvested are considered above average and will require more investment in their drying processes. Some areas reported premature germination and plant decay because of the humidity excess. Emater-RS maintains the state's average yields estimated at 3,329 kg/hectare, with recent results remaining within prior projections, according to the agency's weekly report released on 2 May. Thus, soybean production in Rio Grande do Sul is still set to reach a record 22.2mn metric tonnes (t). But market participants agree that forecasts for the state may be revised down in the next weeks, as field surveys begin to accurately assess the excessive rainfall's total damages. By João Petrini, Maria Albuquerque and Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil hydroelectric dam bursts under record rains

03/05/24

Brazil hydroelectric dam bursts under record rains

Sao Paulo, 3 May (Argus) — Brazilian power generation company Companhia Energetica Rio das Antas (Ceran) found a partial rupture in its 100MW 14 de Julho hydroelectric plant following record precipitation in Rio Grande do Sul state. Flooding from the record rains has left 37 dead and forced more than 23,000 people out of their homes, causing widespread damage across the state, including washed out bridges and roads across several cities. Ceran reported that the dam of the hydroelectric plant on the Antas River suffered a rupture under the heavy rains and the company implemented an emergency evacuation plan on 1 May. Ceran's 130MW Monte Claro and 130MW Castro Alves plants are under intense monitoring, the company said in a statement. Rio Grande do Sul state governor Eduardo Leite declared a state of emergency and the federal government promised to release funding for emergency disaster relief. Leite said the flooding will likely go down as the worst environmental disaster in the state's history. Brazil's southernmost state along the border with Argentina has been punished by record precipitation over the past year owing to the effects of the strong El Nino weather phenomenon, according to Rio Grande do Sul-based weather forecaster MetSul Meteorologia. Brazilian power company CPFL Energia controls Ceran with a 65pc equity stake. Energy company CEEE-GT, which is owned by steel manufacturer CSN, owns another 30pc, and Norway's Statkraft owns the remaining 5pc. The state had declared a state of emergency as recently as September 2023 because of unusually heavy rains that resulted in the death of more than 30 people. Weather forecasters expect El Nino conditions to abate in the coming months over the eastern Pacific. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more