Cattle on feed numbers continue to swell as the ongoing dry weather and strong demand for high quality beef resulted in a further increase in numbers during the January to March quarter according to the latest Australian Lot Feeders' Association survey.
National feedlot numbers increased by 34,874 head, or 3.1 per cent, from the December quarter to a record 1,145,563 head, ALFA reported. Increases were reported in Queensland where feedlot numbers were up by 22,242 head to a state record of 653,528 head. Increases were also reported in South Australia and West Australia, while New South Wales and Victoria experienced declines.
ALFA president Bryce Camm said the number of cattle on feed continued to be influenced by dry conditions coupled with strong demand for high-quality Australian beef.
"The record capacity and cattle on feed number, despite being faced with very challenging seasonal and climatic conditions, indicates how resilient lot feeding businesses have become and the important role they play in meeting our customers' needs," Mr Camm said.
Cheaper cattle prices spurred on by the largescale destocking by cattle farmers saw feed steer prices fall to a four-year low of 232c/kg lwt, said MLA's Scott Tolmie. He said improved rain saw feeder steer prices recover to 280c/kg lwt, in the last quarter.
Easing grain prices in recent months has also offered some relief for feedlot operators. Stockfeed wheat prices into the Darling Downs have fallen to $375 from $450 in early 2019.
Southern Queensland grain prices moved solidly higher last week in a mix of strengthening global markets and production concerns for Australia's 2019 winter grain crops. Ongoing dry weather in parts of Queensland, NSW and WA is casting doubts over how much of the intended 2019 winter crop will get planted before the planting window is completely closed.
Old crop Darling Downs wheat was steady at $375 delivered but new crop $15 higher at $355. ASX east coast wheat futures gained $16 to $318 a tonne.
United States wheat futures rocketed up 10-11 pc last week as excessive wet weather continued to prevent farmers from planting corn and thereby jeopardising the size of the upcoming harvest. Wet weather is also starting to harm US wheat yields and quality, with parts of Kansas, the largest wheat production state, on track to record its wettest May on record.
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