Grain prices continue to struggle despite record numbers of cattle on feed

While numbers in NSW, SA, and WA surged, Queensland and Victorian figures declined over the quarter.

Queensland cattle on feed numbers fell by 23,806 head to 750,246 head, representing 58pc of the national total.

National capacity increased by 1.1pc 1.59 million head. Utilisation rates rose by 1pc to 81.2pc in the December quarter.

This is the fifth consecutive lift to feedlot capacity, leading to record capacity for the sector.

ALFA President, Barb Madden, said lifts to numbers on feed are reflective of the availability of feeder cattle during late spring and early summer 2023.

Local grain prices remain on the defensive, despite the positive demand inputs.

Benchmark ASW wheat futures fell by $12 to $335 a tonne, which is back $50 from the start of the year.

Northern cash markets were down $3 - $4 for the week for wheat, barley and sorghum.

Northern sorghum bids slipped $3 - 4 to $347 delivered into Downs packers under the weight of falling international prices.

Global wheat, feed grain and oilseed prices continued to fall last week as markets transition back to comfortable world supplies.

Nearby United States corn futures fell below $4.0 per bushel last week, levels not seen since late 2020.

Prospects of another massive Russian wheat harvest continue to weigh on world prices as well.

Hopes are building that India will allow some chickpea imports ahead of its general election later this year.

Strong Indian demand has been supporting lentil prices in Victoria and South Australia but the high import tariffs on is holding back demand for chickpea imports.

Traders at the recent Global Pulse Confederation conference in New Delhi came away optimistic the Modi government may move to allow more chickpea imports, later in the year to address tight domestic supplies.

Current chickpea prices are sitting around $860 delivered into Darling Downs packers which is well above the lows of around $600 in recent years. Lentil prices in southeastern Australia are around $880 - 890 delivered port.

Stronger prices and good sub soil moisture levels are expected to support larger chickpea plantings in the autumn.