Processor grids drop 10-15c/kg

Shan Goodwin
By Shan Goodwin
March 16 2022 - 12:30am
Port woes see processors pull back from cattle market

PROCESSOR grids in Queensland and Northern NSW have dropped 10 to 15 cents a kilogram on the back of overflowing freezers with reefer storage full at the country's largest beef export shipping facility, the Port of Brisbane.

While shipments are starting to flow out of the port now, it is still at restricted rates with vessels having issues navigating debris brought down from floods, Tim Jude, livestock and commodities broker with StoneX Financial, reported.

Advertisement

Ad

All refrigerated container space was taken at the end of last week and that in turn led to some processors in the region pulling shifts back, which has continued into this week.

"With Easter coming soon - typically the lowest kill of the year apart from Christmas and New Year - it's hard to see processors making a significant dent in the backlog of finished cattle in the next four to six weeks," Mr Jude said.

"While quality runs will continue to find money, the backlog of finished cattle and increased grain ration costs will continue to place a little bit of pressure on the heavier end of markets for the time being."

Mr Jude said the other bearish factor to watch for was cost of living issues.

"Cashed-up consumers who saved during COVID haven't stopped buying beef on its way up, for the most part," he said.

"But with war on the TV, the prospect of increased interest rates and fuel north of $2, it wouldn't be a surprise to see beef being substituted in some trolleys as consumers pull back spending."

ALSO SEE:

For all the big news in beef, sign up below to receive our Red Meat newsletter.

Shan Goodwin

Shan Goodwin

National Agriculture Writer - Beef

Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally.

Get the latest Australia news in your inbox

Sign up for our newsletter to stay up to date.

We care about the protection of your data. Read our Privacy Policy.