Current Trends in Australia’s Cattle Industry

Recent rainfall across the Northern Territory and parts of Queensland has significantly impacted the cattle industry, providing a much-needed circuit-breaker. Although some pastures are beginning to dry, patches of green remain, and warm temperatures (above 20°C) are encouraging late-season growth.

Impact on Cattle Turnoff

This weather is helping to slow the turnoff of slaughter cattle. The heavy rain in the NT is restricting movements from central pastoral areas, allowing Queensland processors a chance to catch up. The expected turnout at the Roma sale is projected to be around 3,500, indicating a potential easing from the heavy numbers seen in previous weeks, at least until the first frosts arrive.

Price Outlook in Queensland

Southern processors are buying cattle in QLD markets on a liveweight basis, with bullocks priced between 630c and 670c/kg carcass weight. Feeder steers, especially flatbacks, are fetching prices from 360c to 380c/kg liveweight, while Angus feeders are seeing a higher demand at 455c/kg. Despite significant price rises recently, demand for store cattle in Queensland appears to be slowing.

New South Wales Developments

In New South Wales, demand for Angus feeder steers has surged, with feedlots paying up to 460c/kg liveweight and 400-420c/kg for black baldies. The market for entry-weight feeder cattle is experiencing a pinch, anticipated to last until July or August, with restocker cattle prices increasing sharply from 400c/kg to 480-500c/kg for store cattle.

Weather Conditions in South Australia

Elders’ livestock manager in SA notes minimal change due to recent dust storms, despite some rain. General forecasts predict mild weather, which is crucial for pasture growth. Most cows on the market are older, either in calf or with autumn calves, which could further slow the supply as farmers await additional rain.

Trends in Victoria

Western Victoria and southeastern SA are reportedly facing dire conditions, with long-term agents noting significantly challenging environments. Although $400 lamb sales have briefly lifted spirits, the cost of livestock feeding remains a concern.

Updates from Tasmania

Recent rainfall in Tasmania has aided conditions, but cold weather is hindering soil temperatures. The slaughter cattle market remains steady at 720-730/kg carcass weight for program cattle and 580-600c/kg for cows. A notable auction of 500 store cattle last Friday showed producers eager to offload before winter, with prices reflecting recent demand fluctuations.

Western Australia Highlights

On a lighter note, Western Australia is observing a public holiday in celebration of the King’s birthday. Fortunately, most livestock areas received good rainfall recently, which should positively affect southern store markets and enhance pastures and fodder crops.

Richard Koch, Elders

Author: Richard Koch, Elders business intelligence analyst, discusses local market conditions and trends with senior Elders managers from across Australia each Monday morning.