Stable Feeder Prices in Eastern Australia Post-Easter

Following the Easter and ANZAC Day break, feeder prices across eastern Australia have remained largely unchanged as the grainfed industry resumes operations. In Queensland, competitive supply chains currently offer prices of 375-380c/kg for flatback heavy feeders and between 405c and 435c/kg for Angus, depending on individual procurement situations. Notably, these rates have seen little movement since before the holiday period.

With the exception of the Channels, northern grazing areas are drying out after earlier rains, making logistics easier for feedlots and processors. The backlog of cattle in feedlots, caused by processing challenges earlier, has now largely dissipated.

As early frosts loom, some producers are weighing their turnoff options for the coming month. Large lotfeeders in the Darling Downs and Northern NSW are expecting a solid to strong supply of feeder cattle throughout May, unless unexpected weather events occur.

The concern over heavy cattle exceeding upper weight limits has led some operators to walk out herds to loading points post-Easter for management purposes.

Regional Price Variations

In the southern regions, quotes for Angus feeders in the Southern Riverina range from 420c to 440c/kg, marking an increase of 10c compared to the previous week. However, quotes for British cross feeders have been harder to obtain this week.

Rain observed in parts of NSW and Victoria over the weekend could temporarily slow southern feeder supply, particularly if additional rainfall follows. A north-to-south transition of feeders later this year seems likely, as many southern regions face a deficit of heavy flatback feeders.

Given current and anticipated export beef demand, few feedlot operators want to be caught with empty pens, thus sharing the supply challenge.

Grass Ox Strategy?

The recent rainfall has prompted discussions on whether some young cattle initially intended for feeder sale will instead be retained for grass conversion. Supply chain managers believe that any shift would likely be modest. The national beef herd’s current size will also mitigate any significant effects of retained feeders, according to a prominent grainfed operator.

“There’s less grass bullocks produced each year. Most people are geared up to produce feeders now. Though some cattle will inevitably become overweight for feeders, a large-scale transition to grassfed bullocks is unlikely,”

Feeder Turnoff Patterns

The late summer rains in Queensland and NSW have spurred speculation about how they might influence feeder market dynamics. Analysts anticipate that feeder weights will be heavier on average, particularly later in the cycle, due to pasture and herbage growth.

One hypothesis suggests that this year’s feeder turnoff might be more segmented than usual.

Automated systems like Optiweigh have equipped many cattle producers with better insight into weight gain compared to previous years, enhancing their management practices.

Market Considerations

Most feeder steer grids, set by large operators in eastern Australia, target steers weighing between 380 and 500kg to avoid overweight penalties. In certain instances, being over these limits incurs significant discounts on sale prices.

While larger vendors may sell a few “outliers” to achieve upper-end sales, the trend shows a move towards smaller, more frequent turnoffs, allowing for better weight management.

Current Saleyard Trends

Early sales data from saleyards indicate some weakness, particularly for cheaper black feeder weight steers in regions like Wagga. The National Livestock Reporting Service (NLRS) feeder steer indicator currently sits at 385c/kg, reflecting a 6c increase since before Easter and a 14c rise compared to this time last month.