Where will domestic processors find prime cattle in suitable numbers into the future?
One agent who regularly grain feeds cattle for the domestic trade, said feed prices have shot through the roof and he wished he hadn’t bought cattle last week.
Barley and cotton seed prices have skyrocketed.
The feed cost rise will be a problem for processors in the coming months.
Contract prices for grainfed yearling steers and heifers were around 550 cents per kilogram back in March-April.
Even if producers were able to get this price now, the increased cost of feeding would create a negative result – unless stock were purchased very well at that time.
While MLA’s over the hooks report form last week put domestic OTH prices all above 500c/kg, these and export cattle were all back 3c/kg cwt.
Prices peaked at 332c/kg lwt (550c/kg cwt) for the best grain assisted cattle as processors sought a few extra bodies for this week.
