Market Morsel: A sunny state
Market Morsel
At the start of September the EP3 team released an analysis piece on feedlot gross margins in Queensland. An update to the calculations for the September period highlights margins for medium and long feed regimes have improved, meanwhile the short fed regime has trekked sideways.
The average gross margin, across all feed regime lengths, has lifted from a profit of $116 per head to $166. Underpinning the improved feedlot margin has been a 5% lift in the 100-day OTH grain fed steer price with the steer value averaging 717c/kg cwt over September, up from 685 cents in August.
A summary of the different feed regimes highlights that:
- The short fed (105 day) margin has trended sideways from $15 per head in August to $12 over September. Short fed margins are sitting 88% under the ten-year trend usually seen during September of approximately $100 per head gross margin profit.
- The medium fed trade (155 days) has improved from $144 per head in August to $201 per head gross margin profit in September. Medium term margins are sitting 61% above the ten-year average for September.
- The long fed regime (200 days) has seen a 50% lift over September to hit $285 per head profit. Long fed margins are running at levels that are 156% above the longer-term seasonal trend for September.
