Based on turn off volumes and changes in cattle on feed inventories, implied placements allows us to estimate the number of cattle that entered feedlots during a quarter. This data provides scope for the number of cattle entering pens across the country and how that has changed as numbers on feed have grown over the past 5-6 years particularly.
As Figure 1 depicts below, Nationally (green line) growth in placements has increased since late Q3 2023 and the fundamental leader of that placement’s growth has been QLD. In Q2 2026, QLD on average placed 53,000 head of feeder cattle into pens each week, a rise of 33% or 13,300 head compared to Q2 2023.
Conversely, NSW placements of feeders have effectively flatlined since Q1 2025, with around 20,000 head placed into pens per week.
NSW & QLD combined, account for 89% of the total number of cattle placed into feedlots on a quarterly basis – dominating the national picture. Why this is important, coupled with understanding where the growth in placements has been, ties into quasi days on feed and provides further insight the number of days feedlots are feeding cattle for in respective states.
What becomes clear, is that QLD’s average quasi days on feed number continues to soften sharply, reflecting a more concentrated number of shorterfed programs. In Q2 QLD quasi days on feed numbers was 137 days.
Whereas NSW’s results, with its average sitting at 170 days reflects a more Bos Taurus / Angus type program for longer fed cattle of a differing quality specification.
Understanding flows of cattle, where the major markets are and where the demand pull’s from, can support producers in decision making from a marketing perspective.
Looking ahead, I am of the view that we may potentially continue to see placements rise in both the major states as more pen space is built and utilised. Continuing the structural trend the industry has been and is undergoing, towards a more grainfed dominated supply chain. Placements of cattle on feed is another product of that.
Beyond the macro level data and bringing the feedlot sector back to a markets level, there has been building interest in utilising the StoneX Feeder Cattle forward contract in the current market environment by producers across the broader eastern seaboard.
Pricing for Flatback feeder steers delivered to the Darling Downs in Queensland is seeing most interest in the Q1 2027 contracts (January / February & March). Bids for physical delivery of feeder steers In January at $5.25 with discounts applied for deliveries to regional locations, such as Clermont, Blackall, Winton & others.
For vendors considering forward contracting options when the spot market is priced above the 95th percentile on record – the ability to potentially protect and secure profit, further forwards than spot market prices is the application of the forward contract and the role it can play in potentially supporting business performance.
Risk management is a key component to that and protecting against downside moves, but so is securing margin in the trade.
Recent analysis demonstrates the scale and dominance at which the QLD & to a lesser extent NSW feedlotting sectors operate.
Understanding cattle flows and where the major markets are, for producers can be important points of reference to assist in cattle marketing activities.
Forward contracts for flatback feeder steers delivered to the Darling Downs in January 2027 at $5.25 represent a potential way to secure margin in a trade.
Ripley Atkinson's experience in the red meat industry and current role at StoneX developing price risk management tools for Australia’s sheep and cattle sectors ensures he delivers unique, whole of supply chain insights and analysis across key factors such as prices, supply, production and the drivers of the sheep and cattle cycles.
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