Cattle on feed reached the unprecedented level of 1,126,666 head for the July to September quarter, increasing a further 6,207 head or just over 0.5 per cent from the June quarter.
The latest industry quarterly feedlot survey, released this morning, shows an increase in numbers on feed was recorded in Queensland and South Australia.
Queensland increased by 22,581 head, an increase of 4pc from the previous quarter to 652,074 head, while South Australia was up 5pc to 34,526 head during the same period.
Western Australia saw a decrease of 30pc to 24,596 head, a reflection of the seasonal placement of cattle onto feed in that state.
Australian Lot Feeders Association president, Bryce Camm, said 2018 has been a year dictated by east coast drought conditions which has driven feedlot cattle inventory and grain fed beef exports to record levels.
“All supply chain participants are being challenged under the current conditions and it’s no surprise that commodity markets and cattle inputs are impacting feedlot margins,” he said.
“Yet cattle on feed hit an all-time high again this quarter reflecting the important role feedlots play in managing seasonal variability.
“Global demand for consistent high-quality Australian beef, driven by the exponential growth in Australian branded beef, are the fundamentals that are behind investor confidence in the feedlot sector.”
Meat and Livestock Australia’s Scott Tolmie, Manager of Market Intelligence, said continued strong demand, a favourable currency and grain fed beef supply caused export volumes to break the record set in the previous quarter, totalling 83,222 tonnes shipping weight; up 13pc from the same period last year.
“On the production side, strong demand for grain collided with weak eastern Australian supply driving up grain prices and squeezing feedlot margins; with some feedstocks nearing 10-year highs in August,” he said.
“Wheat ex-Darling Downs averaged $433/tonne, while barley averaged $424/tonne, an increase of 14pc and 11pc on the June quarter and 36pc and 37pc year-on-year, respectively.
“The national saleyard feeder steer indicator demonstrated vulnerability to spiking grain prices during the quarter, falling to a three-year low of 257c/kg in August. The indicator rallied during September, ending the quarter at 277c/kg lwt.
“Supported by Asian demand and a depreciating Australian dollar, the Queensland 100-day grain fed steer over-the-hooks indicator averaged 533c/kg cwt which was up 3pc year-on-year and gave some minor relief to feedlot balance sheets.”
