Over-the-hooks resist rain

Despite widespread rain across the southern half of the state over the weekend, and more light showers forecast in coming days for the south-east, Queensland cattle over-the-hook indicators remained steady this week for most descriptions. Yearlings, grown steers, heifers and cows were firm on week-ago levels, with very few contributors changing grids. Meanwhile, bulls and MSA categories eased – with the margins narrowing between MSA and non-MSA types.

This week in Queensland, over-the-hook indicators averaged;

• 489¢/kg cwt for yearling steers (300-320kg cwt, 0-2 teeth, 5-22mm fat)
• 484¢/kg cwt for yearling heifers (300-320kg cwt, 0-2 teeth, 5-22mm fat)
• 509¢/kg cwt for MSA yearling steers (300-320kg cwt, 0-2 teeth, 5-22mm fat)
• 485¢/kg cwt for grown steers (300-400kg, 0-4 teeth, 5-22mm fat)
• 425¢/kg cwt for cows (300-400kg, 0-8 teeth, 3-12mm fat)

The lack of movement in processor grids indicates the reasonable supply booked in advance, on the back of the deteriorating conditions across the state.

However, the Bureau of Meteorology’s most recent rainfall outlook for October is more positive. Almost all of NSW, SA and Queensland are very likely to receive above-average rain for the month. In particular, the likelihood for southern Queensland is higher than 75%. For November, on the other hand, the likelihood of a wetter or drier than average month is roughly equal.

If the October outlook comes to fruition, this may reassert upward pressure on the market, as supply tightens and restockers re-enter the market.

This was evident at today’s (Tuesday 3 October) Roma Store sale, where young cattle sold to stronger restocker demand as a result of the rain and a smaller yarding, with most selling to a dearer trend.

Restocker C2 yearling steers weighing 200-280kg were 23¢ higher, averaging 342.9¢ and ranging from 238¢ to 388¢, while their heifer counterparts sold for an average of 301.4¢, up 43¢/kg lwt. Heavier types to also lifted, with C3 yearling steers weighing 330-400kg selling to restockers for an average of 326.1¢, up 44¢/kg,

This translated to a lift of 9.75¢/kg cwt from the previous day for the Eastern Young Cattle Indicator (EYCI), which settled on 517.75¢/kg cwt. The EYCI has predominantly been trending downwards since June, despite a brief uplift in late August.

Some recovery in the domestic market may be further supported if US imported 90CL beef prices continue to lift. US imported beef prices have maintained their upward trajectory over the last two weeks, as a result of limited offerings from overseas suppliers, predominantly Australia and New Zealand, and tight availability of spot supplies in the US.

To subscribe to MLA's over-the-hook reports, daily indicator reports, saleyard reports or weekly e-newsletter, please email marketinfo@mla.com.au or alternatively, customise the data using MLA's interactive data tool.