Marts across the country are reporting to Agriland that a number of major buyers for feedlot cattle have been instructed to pull back from the trade this week, in what is being seen as an attempt to cool cattle prices ahead of the larger sales next month.
It is understood that at least two of the country’s major feedlot operations have instructed their agents to ease buying for their respective feedlots this week.
Despite the move, a number of feedlots continue to remain extremely eager for forward-type cattle at marts countrywide, and the move has not managed to put a dampener on the trade as of yet.
In light of the move, smaller-scale store cattle buyers have spotted the trend and have now stepped in to scoop up lots of forward-type heifers and steers in mart rings, as the demand for beef has been forecast to remain strong.
Trade For Feedlot Cattle Coming Into Autumn
The move by the country’s major feedlot cattle buyers will not come as a surprise to speculators on the cattle trade, as this generally happens at some point before the big autumn sales commence every year.
However, what’s worth noting is that the trend generally occurs in mid- to late summer at some stage – when sales are traditionally smaller – and often remains until they return to mart rings in September.
This year’s mart sales have been very different to other years in that numbers of cattle at marts have remained strong throughout June and July – two months that would traditionally see cattle throughput at marts drastically reduced.
The delay in the move this year can be seen as an indication of just how strong the current demand is for forward-type beef cattle, and would not necessarily indicate these feedlots are full with cattle but, instead are simply preparing for an influx of stock next month.
