Northern cattle markets pick up

---

Tightening supplies, further exacerbated by recent rain, has resulted in all major northern cattle indicators improving throughout June. The shortage of cattle has reportedly seen increased live export activity through north Queensland saleyards, particularly in early June, while processors have been more active through the physical market in recent weeks.

North Queensland cattle slaughter, the best indicator of finished cattle supplies, has continued to track below year-ago levels throughout 2016. Last week, adult cattle kill numbers eased to 19,580 head, back 11% on the previous week and 30% behind year-ago levels. A modest rally in the US imported grinding beef market, as is typical going into the northern hemisphere summer, is also providing some support to finished cattle prices.

The north Queensland over-the-hook heavy steer indicator was 539¢/kg cwt this week, up 116¢/kg cwt on last year but still below where it peaked in September last year. The medium cow indicator also increased, to 468¢/kg cwt, with the top of some cow grids exceeding 500¢/kg cwt. Up until last week, prime cattle through the saleyards had increased by a similar magnitude as direct consignments and the two markets were yet to significantly diverge. With Emerald closed today due to rain and Charters Towers recording strong gains yesterday, particularly on light cows and store steers and heifers, the physical market may well have outpaced direct consignment prices.

Live export prices have also continued to track higher after bottoming out at the start of May. The Darwin delivered feeder steer indicator is currently around 323¢/kg lwt, up 63¢/kg cwt year-on-year and some contributors quoting as high as 330¢/kg lwt. The Townsville delivered feeder steer is currently tracking around the 300¢/kg lwt. While dearer, all major live export indicators are still 40-50¢/kg lwt below where they peaked in February.