Eastern grids ease as cattle slaughter lifts

Over-the-hook cattle indicators across the eastern states continued to move lower this week (ending 28^th October), with a lift in cattle supplies across Queensland, New South Wales and Victoria underpinning the downward trend.

In Queensland, compared to last week;

• Trade yearling steers (240-260kg, A-C muscle) averaged 540¢ – back 14¢/kg cwt
• Heavy yearling steers (300-320kg, A-C muscle) averaged 555¢ – back 14¢/kg cwt
• Heavy MSA yearling steers (300-320kg, A-C muscle) averaged 565¢ – back 13¢/kg cwt
• Medium grown steers (260-280kg, A-C muscle) averaged 539¢ – back 14¢/kg cwt
• Heavy cows (300-400kg, A-D muscle) averaged 496¢ – back 19¢/kg cwt

In New South Wales;

• Trade yearling steers averaged 562¢ – down 14¢/kg cwt
• Heavy yearling steers averaged 573¢ – down 14¢/kg cwt
• Heavy MSA yearling steers averaged 604¢ – down 17¢/kg cwt
• Medium grown steers averaged 557¢ – down 13¢/kg cwt
• Heavy cows averaged 497¢ – down 20¢/kg cwt

In Victoria;

• Trade yearling steers averaged 579¢ – back 21¢/kg cwt
• Heavy yearling steers averaged 573¢ – back 21¢/kg cwt
• Medium grown steers averaged 574¢ – back 21¢/kg cwt
• Heavy cows averaged 470¢ – back 13¢/kg cwt

Following widespread and, in some parts heavy, rainfall across key supply regions during September, drier conditions of late have seen cattle availability increase. Eastern states cattle slaughter has continued to lift during October, as access to both saleyards and processing plants reportedly improve and in line with the seasonal trend.

Last week (ending 21^st October), Queensland cattle slaughter was 9% higher than the week prior, at just over 68,900 head – with the female kill up 17%, at 25,000 head.  Victorian cattle slaughter was 2% higher week-on-week, at just shy of 19,600 head, while processing in New South Wales was relatively unchanged, at 27,138 head.

Additionally, trading activity in the US imported beef market remains reportedly quiet, due to lower domestic US beef prices and reduced overseas supplies. The US 90CL cow beef indicator averaged 203US¢ so far in October – down 25 US¢/lb CIF on the same time last year.