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THE BULLSHEET

22nd July 2016

Cattle prices have spent the past two weeks consolidating recent gains. Similar to the period leading up to the last newsletter, there have been no major rises in processor slaughter grids over the past two weeks. With the recent rain in CQ and NSW, plants continue to struggle to get enough cattle for full kill weeks. This week we have seen job cuts announced by JBS at Dinmore and Beef City on top of recent job cuts/dropped shifts at Bindaree Beef. Dinmore has now moved to shutting on Mondays and then trying to fill the next eight shifts from Tuesday - Friday. Underlining that the rise in prices has run out of steam - the benchmark ECYI has flat lined from 658 c/kg DRSD on the 29th June through to 661 c/kg DRSD on the 21st July.

Similarly, although feedlots have generally continued to struggle with the low supply of suitable cattle they have also tended to hold rates steady. Domestic weight feedlots have quoted suitable heifers from 320 c/kg Live to 350 c/kg L. Domestic weights steers ranged from 340 - 360 c/kg L. EU export feeder steers range from 355—380 c/kg L while non EU heavy steers ranged from 350 - 370 c/kg L.

The recent rain, a warmer week promoting growth in oats crops and clover and the increased likelihood of a decent spring continues to fire the store restocker market. Todays A+ sale was very active with some very solid results. Stirling and Rachel Dowe had 302 kg yard weaned steers that made $1100 on farm (364 c/kg Live). David and Wendy Anderson listed EU accredited PTIC Rec Tag Heifers which sold for $1375 per head. Both lots went to relatively local buyers.  

 
A+ held their second Targeted Feeder Sale this week with 1285 head listed and great results. One of the interesting developments was the offering of some of the lots forward contract for delivery in September and October. Those steers sold for 360 c/kg L on farm effectively locking in this rate for delivery off oats later in the season. We think this an excellent risk management tool, utilising both a forward contract and the power of an open auction. The next sales are on the 9th August and the 23rd August. If any client wishes to get cattle into this sale or wish to discuss what is involved please contact Danny or Andrew.

Lamb prices appear to have started to decline from recent levels of around $6.20, which appears to have been supply rather than demand driven. Currently XB lambs are quoted at around $5.80. Many supply areas have now seen a very good seasonal break with finished lambs already being turned off fresh pasture growth. Prices could well continue to ease into the Spring and Summer as supplies increase in the face of lacklustre demand. Forward contract rates which have been available from one major processor reflect this trend, with December quoted at $5.00. The mutton market has remained strong, currently at $3.60 for merino wethers and $3.00 for XB sheep. News that the Wallangarra plant has closed for 12 months ( and perhaps permanently ) should not be viewed with any great deal of alarm by local producers. The Tamworth plant owned by the same processor is handling both lambs and mutton and is not a great difference freight wise. There are also solid options available with smaller processors and wholesalers.

Have a good weekend,
Cheers
Andrew

"Common quotes" - a composite snapshot of the currently available direct to processor/feedlot quotes.

EU Accredited Slaughter :
To 600 c/kg DRSD (Heifers less 5 c/kg)

PCAS / Farm Assured :
To 610 - 625 c/kg DRSD  (Heifers less 5 c/kg)

MSA Grass Trade :
To 580 c/kg DRSD (Heifers less 5 c/kg)

MSA Grain Assist :
To 610 c/kg DRSD (Heifers less 5 c/kg)

Jap Ox :
To 560 c/kg DRSD

Heavy Cows (260 kg DRSD +):
To 525 c/kg DRSD

Medium Cows (up to 260 kg DRSD) :
To 510 c/kg DRSD

OLM Grain Certified :
645 c/kg DRSD (Sept Delivery)


Export Feeder Steers :
To 370 c/kg Live

EU Export Feeder Steers:
To 380 c/kg Live

Domestic Feeder Steers :
340 - 360 c/kg Live

Domestic Feeder Heifers :
320 - 350 c/kg Live

National Sheep and Lamb Indicators. - 21/07/2016
Restocker Lamb : 534 c/kg DRSD
Merino Lambs : 565 c/kg DRSD
Trade Lambs : 609 c/kg DRSD
Heavy Lambs : 631 c/kg DRSD
Mutton : 384 c/kg DRSD
The bull selling season is upon us again and sales are well underway. The "Profit Driven Genetics" Wombramurra Black Simmental sale is on Wednesday the 10th August. I have seen these genetics at work commercially and have been very impressed with their softness and muscling. If any client would like assistance with buying bulls at this sale or the stud of their choice please let us know in advance. Advanced notice allows us to do the appropriate research prior to the sale resulting in better buying outcomes. Here are some points that to consider well before your target bull sale:
Let us know that you would like assistance so that we can plan to attend.
Have a think about:
  • Preferred Carrier (if any)
  • Insurance Required ?
  • Type of target genetics (eg: Low Birth Weight or 600 Day growth ect)
  • A rough guide of price range
  • An indication as to wether you will be attending or leaving the purchases to one of us.
Timing of the bull sales are tight to early planning would be appreciated. Selling agents are increasingly looking to have purchases to be booked to accounts so if this service is required please let us know well in advance of the sale.
If any clients have any queries or questions please contact the "old bull", Danny!
Beef Central - Bull Sale Summary
MLA Cattle Industry Projections - July 2016 Update
MLA Thursday 21/07/2016 - Sheep and Lamb Summary
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PO Box 1394, Goondiwindi QLD 4390

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Objective Livestock Marketing Pty Ltd · PO Box 1394 · Goondiwindi, Qld 4390 · Australia

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