Queensland over-the-hook grids leap into August

After remaining relatively steady throughout July, the Queensland over-the-hook (OTH) cattle indicators jumped 12¢ on average across all sections this week – with the same categories averaging over 50¢/kg cwt higher than the same time last year.

In the physical market, buyer demand for well-conditioned lines in the first week of August has seen some indicators reach their highest level on record, bolstered by widespread rainfall across major producing regions of late.

This week, compared to the same time last year:

-          Trade yearling steers (240-260kg, A-C muscle) averaged 562¢, up 66¢/kg cwt

-          Heavy yearling steers (300-320kg, A-C muscle) averaged 577¢, up 69¢/kg cwt

-          Heavy MSA yearling steers averaged 591¢, up 44¢/kg cwt

-          Medium grown steers (260-280kg, A-C muscle) averaged 562¢, up 74¢/kg cwt

-          Heavy cows (300-400kg, A-D muscle) averaged 526¢, up 40¢/kg cwt

Following what was a heavily rain-affected week across the state, Queensland cattle slaughter totalled just over 67,700 head in the final week of July – lifting 16% on what was recorded the week prior.

Highlighted in the latest rainfall outlook by the Bureau of Meteorology (BOM), above average rainfall is forecast for the eastern and northern regions of Queensland over the August to October period. Despite lower accuracy historically throughout central Queensland for this time of the year, if the outlook comes to fruition, it will likely support the market over the coming months, with stronger restocker competition and consequent tighter cattle availability.