Cattle market: High demand driving bidders in saleyards and online
The cattle market is being inundated with bidders with the strong season leading to high demand. But some industry experts are recommending producers proceed with caution before buying up big.
THE best season across much of eastern Australia for years is creating an insatiable demand for cattle.
Buoyed by prime rates — the Eastern Young Cattle Indicator closed on Monday at 776.75c/kg — producers are scrambling to stock paddocks with replacement cattle.
The EYCI is now 291.5c/kg or 60 per cent higher than it was 12 months ago, when it sat at 485.25c/kg carcass weight.
But some industry watchers are warning producers to do their figures carefully before embarking on a pricey buying spree. Both physical store markets and online auctions are being inundated with bidding.
Last week, AuctionsPlus recorded a $293 lift for pregnancy-tested-in-calf heifers (average $2066) and a $41 increase for PTIC cows (average $1868) reflecting renewed enthusiasm for breeders.
And while prices for the very lightest and very heaviest steers were down, all other grades were dearer on the online platform last week.
AuctionsPlus analyst Zoe McFarlan said most grades of cattle sold at higher rates “as competition goes from strength to strength”.
Meridian Agriculture director Paul Blackshaw cautioned producers to “expect the unexpected” regarding future cattle returns.
“All we can really say to people is to do your due diligence and do the numbers when buying in stock,” Mr Blackshaw said.
“Overarching everything is the fallout from COVID. Sometimes people get caught up in the market momentum and some of those buying have just received good prices for finished stock.
“I can understand people don’t want to leave paddocks empty, but if you need say 200 cattle, then an option can be to buy 100 now and 100 in six months, or even make hay from some of your feed.”
Paull and Scollard Nutrien Ag Solutions agent Tim Robinson said the enthusiasm to buy cattle meant bidding patterns for both physical sales and online auctions had changed.
“People are so motivated to buy cattle that smaller lines are still attracting good competition,” Mr Robinson said.
“Normally, buyers would want a truck load but now they are prepared to buy small lot sizes and put them together to fill their needs.”
Centralwest NSW producer Nigel Kerin from Yeoval said big banks of grass were fuelling prices. “The restocker market is steaming hot at the moment,” he said.
“The only thing you will find that is skinny is the bank accounts.
“It’s time to play cashflow catch-up for most businesses.”
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