This week’s market:  

Rain & floods bring QLD cattle markets to a standstill

Widespread rain, flooding and road closures have brought much of the cattle market to a standstill this week. In Queensland, the only two major sales to operate were Toowoomba (with a small yarding) and Dalby with good, but reduced, numbers. Seven regional sales in Queensland were cancelled due to rain, including two at Roma. In NSW, sale numbers were down and often halved while the severe flooding in the northwest is likely to limit supply from that region for some weeks to come.

“ Cola” is predicting further falls in the next few days over the Queensland northern peninsular as well as the western strip into northern NSW, with the possibility of a cyclonic influence in north Queensland next week. The rain is forecast to ease on the east coast by mid next week but moving cattle out of sodden paddocks and over load-limited roads may take longer. February and March are the traditional months for the heaviest wet season rain so further market disruptions are likely in the weeks ahead.

The rain has halted the slide in market prices that was precipitated by the dry start to the year. Many producers now have a guarantee of good pastures for the remaining summer into early autumn and that should reflect in a strengthening market.

OTH Rates:

Rain also caused the recent slide in OTH quotes to take a pause this week as buyers assess their supply probabilities in the weeks ahead. (Quote details below). The level of actual supply after the rain is likely to have a major influence on the direction prices take from here on. Asian demand should begin to pick up after a slow start and US grinding beef supplies should tighten as the months progress. Although weather could play a big part in selling decisions, buyers would be hoping that the need for a pay day will see a flood of pent-up supply when weather permits.

Typical PRIME & STORE Benchmark Prices

The reduced numbers in physical markets this week generally produced price recoveries of an average +(5-10c) in most categories, although heavy feeder cattle struggled at times and lost as much. At Dalby, the only major sale in Queensland, bullocks gained +2c ave 184c top 190c, cows gained +(6-8c) ave 162c top 169c for heavies while prime grown slaughter heifers gained +11c to make 183c. Heavy yearling steers to feed dropped -10c ave 189c top 203c while similar heifers dropped -6c ave 185c top 193c. However younger yearlings often improved +(5-10c). In NSW, the good numbers at Dubbo saw a few bullocks ave 185-190c (f to +6c) while heavy cows gained +(4-10c) ave 154-160c top 163c and heavy grown heifers averaged 175c (+/-3c). Heavy yearlings to feed dropped –(12-14c) with the steers ave 203c top 215c and the heifers ave 194c top 203c (More price details for these sales below).

OS News:

In the US, forecasts of rising cattle and beef prices are a weekly, if not daily, event as domestic beef demand there remains firm or marginally up, export prospects improve and the cattle herd drops to the lowest number in 60 years. But as in every forecast these days the unknown ‘EU effect’ is used as a caveat. Since last week, the already record prices for imported Australian beef gained another cent to US222 c/lb for bull and US212 c/lb for cow beef. While US feedlot placements are said to be ample for the first half of 2012, that is projected to reverse rapidly in the second half as rising prices encourage breeding heifer retention from an already depleted herd.

PRIME & STORE SUMMARIES:

QCMI (): This week 200.00

TOOWOOMBA: (30/1/12) Rain halved the yarding to a small 470 head (-480 hd) that was dominated by yearlings with just a handful of export steers but a small supply of cows. Prices varied a few cents either side of recent lower rates but more generally improved. Prime export steers averaged 192c top 204c while heavy cows averaged 151-160c top 175c and heavy heifers made 185c.

Heavy yearling steers averaged 209-219c top 229c while medium types averaged 228-239c top 251c. Heavy yearling heifers over 400kg averaged 197c top 213c to feed and slaughter while heifers under 400kg averaged 213-227c top 230c. Restocker and slaughter calves averaged 235c top 244c while a handful of vealer heifers to slaughter averaged 230c top 234c.

DALBY: (1/2/12) Heavy rain to the west helped slash numbers to 2390 head (-1740 hd) with mixed, though at times improved, rates but heavy feeders steers and heifers were a notable exception dropping a further –(6-12c). Grown steers gained +(2-3c) while cows recovered +6c and grown heifers lifted between +(10-15c).

Prime export steers over 500kg and over 600kg averaged 185c top 191c while heavy feeders averaged 182c top 186c. Heavy cows over 520kg averaged 161c top 169c while medium weight or conditioned cows averaged 150-155c top 163c. Heavy grown heifers averaged 175c top 180c while prime types made 183c. Heavy bulls over 450kg and over 600kg made between 161-173c.

Heavy yearling steers over 400kg averaged 184c top 193c while the heavy Y/heifers averaged 184c, although a few grainfeds averaged 204c top 210c. Heavy yearling steers 330-400kg averaged 208c top 233c while similar heifers averaged 213c top 219c. Medium yearling steers under 330kg averaged 237c top 251c while similar heifers averaged 222c top 229c. Slaughter calves and vealer heifers averaged 232c top 239c.

WODONGA: (31/1/12) A rain reduced yarding of 980 head (-410 hd) plus 390 cows produced a recovery of prices between +(4-12c) and occasionally more, including for grown steers and cows. Heavy export steers 500-600kg averaged 183c top 192c while prime types over 600kg averaged 177c top 190c and heavy manufacturing steers averaged 161c top 168c. Heavy cows over 520kg averaged 142c top 158c while medium weight or conditioned cows averaged 146c top 149c and prime grown heifers averaged 166c top 170c. Heavy bulls over 600kg averaged 167c top 171c.

Heavy yearling steers over 400kg averaged 189c top 201c while similar heifers over 330kg and over 400kg averaged 182c top 198c. Medium yearling steers over 330kg and over 400kg averaged 194c top 205c.

A handful of slaughter calves made 234c. Prime vealer steers over 330kg averaged 218c top 222c while similar heifers averaged 208c top 210c and medium vealer heifers over 280kg averaged 195c top 210c. Medium vealer steers over 280kg averaged 203-209c top 215c.

GUNNEDAH: (31/1/12) Numbers more than halved to 1130 head (-1350 hd) as rain and wet sale conditions sent buyers scrambling for numbers bumping prices +(5-15c) across most categories and occasionally more.

The small yarding of heavy steers and bullocks recovered a modest +3c while the reduced number of cows lifted +(5-12c) and young cattle were up +(5-9c). Steers 450-600kg averaged 182c top 200c while steers 400-450kg averaged 188c top 213c. Steers 350-400kg averaged 207c top 239c while steers 300-350kg averaged 225c top 244c. Young steers 200-300kg averaged 240-257c top 266c.

Heifers 400-450kg averaged 179c top 208c while heifers 350-400kg averaged 195c top 215c and all the heifers between 200-350kg averaged 202-207c top 241c. A handful of cows over 600kg averaged 160c top 167c while cows 500-550kg averaged 151c top 171c and cows 400-500kg averaged 144c top 159c. Bulls 300-600kg averaged 165-171c top 187c.

DUBBO: (2/2/12) Although rain in the region caused a drop in numbers, supply remained strong at 3080 head (-840 hd) of mixed quality cattle. The few export steers gained up to +6c when not firm and heavy cows recovered +(4-10c) while heavy grown heifers sold +/- 3c either side of firm. Heavy yearling to feed lost between –(12-14c) but mid-weight feeder heifers gained +6c. Mid-weight feeder and restocker steers remained firm. A few restocker calves averaged 294c top 340c while light vealer steers made 270c. Heavy vealer heifers to slaughter averaged 220-246c top 250c.

Prime export steers over 500kg and over 600kg averaged 187c to 190c top 191c while heavy feeders 400-500kg lost -10c ave 186c and the medium types lost -15c ave 174c top 190c. Heavy cows over 520kg averaged 159c top 163c medium weight or conditioned cows averaged 148-154c top 162c. Heavy and medium grown heifers averaged 175c top 179c. Heavy bulls over 600kg averaged 171c top 180c.

Heavy and medium yearling steers over 400kg averaged 206c top 247c while similar heifers averaged 193c top 203c. Medium yearling steers 330-400kg averaged 218-224c top 238c to paddock and feed while similar weight feeder heifers averaged 201c top 210c. Light restocker steers under 330kg averaged 216c (-15c) top 233c while similar heifers to restock and slaughter averaged a firm 1754c top 190c.

ROMA (Store): (31/1/12 Cancelled due to rain)

ROMA (Prime): (2/2/12 Cancelled due to rain)

LONGREACH: (1/2/12 No scheduled sale)

CHARTERS TOWERS: (1/2/12 Cancelled due to rain)

EMERALD (Prime & Store): (2/2/12 Cancelled due to rain)

BLACKALL: (2/2/12 and 9/2/12 Cancelled due to rain)

GRACEMERE: (3/2/12 Cancelled due to rain)

OTH Quotes:

Steers (400-500 kg)

Bulls (600 kg plus)

Heifers (440 kg plus)

Cows (500 kg plus)

Cows (400 - 520 kg)

Steers (300-400 kg)

Heifers (340-450 kg)

values: nq = (no quote with the same specification in last report), 0 = (no change).