Feedlots and restockers are driving a surge in cattle prices

Strong competition from lot feeders has driven up cattle prices, driving a "markedly different" feeling in the livestock sector.

Feedlots and restockers are driving a surge in cattle prices as both look to top up on numbers.

The Eastern Young Cattle Indicator has gained 13c/kg in the past week and 75c/kg in the past month to close at 669c/kg carcass weight on Monday.

And the feeder steer indicator, dominated by cattle 400kg liveweight and above, has risen 50c/kg in the past month to close at 350c/kg liveweight.

It was boosted by results at Wagga Wagga, NSW, on Monday, where the National Livestock Reporting Service described competition for heavy feeder steers as “showing impressive momentum”.

The NLRS said lightweight feeder steers were also in demand, selling up to 410c/kg and averaging $1263.

Meat and Livestock Australia market analyst Emily Tan said it was a demand lift rather than a supply shortfall that caused a rise in feeder steer prices.

“Supply is stable with yardings lifting 227 to 11,007 (last week),” Ms Tan said.

“This shift in prices has been driven by the strong competition from lot feeders in driving up the prices in a pursuit to secure numbers.”

The EYCI has gained 13c/kg in the past week.

StoneX Australian livestock and commodities manager Ripley Atkinson said trends seen at major saleyards like Wagga Wagga and Tamworth showed the biggest price movements in the feeder and restocker categories.

“We’re beginning to see similar hallmarks of the 2020-22 period in terms of confidence levels,” Mr Atkinson said.

“Industry sentiment is at markedly different levels from this time three months ago (early November before the rain) and that confidence coupled with some adjustments specifically for feeders looking to fill pens has created this intense demand not seen since 2022.”

Mr Atkinson said feeders were continuing to look for cattle with weight.

“They (lot feeders) are paying good money to get them because most feeders are thinking the same way, in that they’re still looking for higher turnover with less days on feed,” he said.

“We could expect this to potentially play a role in seeing grain-fed turn-off increase when the Q4 feedlot numbers (October to December) become available within the next few weeks.”

Mecardo analyst Olivia Agar said the northern feeder market had been impacted by widespread rain and flooding in large parts of Queensland.

She said saleyard throughput in Queensland almost halved last week compared to the previous week.

Ms Agar said industry analysis had reported that most feedlots were behind on purchases, and feedlot numbers were down as more cattle left than were coming in.

Firm feedlot numbers for the fourth quarter of 2023 will be released later this month.