Processor grids drop 10-15c/kg

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.

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.

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"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."

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