Australia: Supply and demand factors push feeder steer prices sharply higher

Published 2024년 7월 31일

Tridge summary

Australia has seen a significant increase in feeder cattle prices in eastern and southern regions over the past fortnight, with prices rising to around 360-365c for heavy flatback feeders and 400-410c/kg for Angus types. This surge is attributed to a combination of supply and demand factors, including a decrease in southern supply, increased demand from feedlots, and higher demand for oat crops in southern Queensland and NSW. The highest feeder steer indicator value since April, 2023, indicates a tight supply and strong market, leading to a higher Eastern Young Cattle Indicator and forcing lotfeeders to consider heifers and lighter cattle. The market is expected to remain tight until September, with some lotfeeders already operating at high occupancy levels. Additionally, the market faces challenges such as economic malaise in China reducing Australian beef trade and currency fluctuations in Japan making imported beef expensive, leading some consumers to seek alternative proteins.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

THERE have been sharp rises in feeder cattle prices across eastern and southern Australia over the past fortnight, driven by a number of supply and demand factors. The market for good, heavy flatback feeders sourced out of the paddock for delivery Queensland feedlots this week is currently around 360-365c, breaking out from a range between 320c and 335c that buyers were prepared to pay for a long period since late April. Paddock sales of Angus types into large Queensland and northern NSW feedlots are happening this week at anywhere from 400-410c/kg, supply chain contacts said this morning. The Angus segment moved perhaps a month earlier than flatbacks due to the drying-up of southern supply, but has still lifted from earlier rates around 360-370c. In southern regions, good Angus feeders out of the paddock are now closer to 420c/kg, Beef Central was told, but volume remains very tight. Flatback steers are around 380-390c. The NLRS national feeder steer indicator, plotting feeder ...

Source: Beef Central