Queensland over-the-hook indicators lower

Queensland over-the-hook cattle indicators averaged close to 20¢/kg cwt lower across all categories this week (22 August). This was largely due to a lift in saleyard supplies across the state, as producers reportedly opt to turnoff stock ahead of forecast rain for most of the major supply regions over the coming days.

This week, compared to the week-prior:

• Trade yearling steers (240-260kg, A-C muscle) averaged 553¢ – back 19¢/kg cwt
• Heavy yearling steers (300-320kg, A-C muscle) averaged 568¢ – back 19¢/kg cwt
• Heavy MSA yearling steers (300-320kg, A-C muscle) averaged 576¢ – back 27¢/kg cwt
• Medium grown steers (260-260kg, A-C muscle) averaged 552¢ – back 19¢/kg cwt
• Heavy cows (300-400kg, A-D muscle) averaged 513¢ – back 20¢/kg cwt

Last week, a reduction in plant operations contributed to Queensland cattle slaughter declining 17% from the week before and 35% from the same time last year, at just over 55,400 head processed. Looking forward, despite cattle slaughter typically increasing during spring, MLA forecasts the national cattle kill for 2016 to remain 18% lower than last year, at 7.4 million head.

The Bureau of Meteorology forecasts a high probability of above-average rainfall for the August to October period for most of the eastern states, which, if it comes to fruition, is likely to support the market over the coming months, fuelled by strong restocker competition in the physical market.

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