Market Morsel: COF on the rebound

Market Morsel

Australian cattle on feed (COF) numbers lifted nearly 17% from March to June to see 1,173,652 head of cattle reported in the nation’s feedlots. Queensland and Victorian feedlots accounted for the largest percentage gains with numbers in Queensland up 31% and gaining 13% in Victoria. NSW and South Australian figures remained relatively static, meanwhile WA posted a 32% decline in cattle on feed.

The lift in national COF volumes saw the capacity utilisation ratio rise from 69% to 81%, which is the highest level achieved since December 2019. Queensland, which holds the most cattle on feed in the country at 60% of the share also dominates the capacity utilisation ratio with feedlots sitting at 85% capacity.

The increase in cattle on feed in the June quarter represents levels that are 11% higher than the five-year average level for June and sits just below the upper end of the normal fluctuations seen in the last five years for COF figures for June.

Cattle marketings gained less than 2% over the quarter to register 675,302 head marketed, this represents levels that are 8% below the five-year June average for cattle marketings.