Australia's Feeder Steer Indicator reached A¢/kg lwt 544 this week after gaining 38 cents (+7.5%) over the past month, approaching the record A¢/kg lwt 576 set in December 2021. According to Meat & Livestock Australia (MLA), the stronger performance reflects rising feedlot demand, tight global beef supplies and the impact of China's beef import quota system.
Although feeder steer yardings remain close to their long-term average, Australia's feedlot sector continues to expand. The latest National Feedlot Survey conducted by ALFA and MLA showed grainfed cattle turn-off exceeded 1 million head in a single quarter for the first time, highlighting continued investment in feedlot capacity and stronger demand for feeder cattle.
MLA also noted that global beef shortages and exporters' efforts to maximize shipments before China's quota was exhausted helped drive record Australian beef exports during the first half of the year. Between January and June, Australia exported 805,000 tonnes of beef, a first-half record and 103,000 tonnes more than the same period in 2025. With China's quota now filled, demand for feeder steers is expected to remain firm as feedlots position cattle for grainfed beef production ahead of the quota reset in 2027.
