Feeder steers supply surge

Feeder steer supply has reportedly increased in recent weeks, with annual mustering rounds in northern and pastoral areas before summer hits, and those cattle sent from the south to backgrounding operations reaching turn-off weights. National feeder steers fell 6¢/kg to 460¢/kg this week, with throughput numbers climbing by 4000 to above 10,000 head for the indicator for the first time since January. More than half of that number came from NSW, which averaged 473¢/kg.

Heavy steers also lost 6¢/kg for the week, dropping to 422¢/kg. The national Processor Cow Indicator lost 3¢/kg to land at 362¢/kg, which is down nearly 30¢/kg from a month ago. Putting this into perspective, however, it is still sitting about 120¢/kg higher than where it was in mid-May, and nearly 100¢/kg above year-ago levels. Australian beef exports rose in September to the second-highest monthly total on record, up 22% year-on-year. And for the first time this year, all four of Australia’s largest markets increased in the same month.

Despite seasonal hesitation, or perhaps because of it, restocker yearling steers had the least downward pressure this week, falling by less than 1¢/kg to 470¢/kg. A lack of soil moisture and the current strong replacement female prices could be pushing those that have grass to spare right now into trading rather than restocking. One-third of restocker steer indicator-eligible stock came from the Roma, Queensland, store sale this week, which averaged well above the national price at 500¢/kg. This was reflected in the state averages, with Queensland the only one sitting above the national indicator.

Cattle yardings climbed back up to 74,000 head this week, the same level as a fortnight ago, with lower numbers last week due to the long weekend in NSW and South Australia. Also on the back of that was the decline in slaughter last week, but it remained above year-ago levels.