Record weaner sales drive new restocking storm
After injecting at least $62 million into the pockets of southern Australian calf breeders in just five days of trading, restockers are now splashing their cash elsewhere. Find out where.
THE most expensive weaner sales ever conducted in southern Australia injected at least $62 million into the pockets of southern Australian calf breeders in just five days of trading.
And now, the history-making sales are driving a new restocking storm at prime markets.
Both shell-shocked and buoyed by the heady price rates of the New Year calf sales, restockers have shifted their attention to the prime market in the chase to get young cattle on to grass.
In a big price spike, there was surges of 50c/kg-plus for heifers and steers at saleyards such as Wagga Wagga in NSW on Monday as buyers recalculated values against the 500c/kg benchmark set at the southern weaner sales.
The multimillion-dollar payday for calf breeders — calculated from the first week of January weaner sales covered by The Weekly Times — was driven by grass fever and northern restock demand.
For the first time ever, all centres reported prices in excess of $2000 a head for calves. Port Fairy farmer Michael Coffey received this money for both his top Angus steers and heifers.
“I’m speechless. It’s been an unbelievable week,’’ he said, after selling steers to $2143 and heifers to $2103 at Hamilton last week.
“I just hope that if the market does come back that it doesn’t crash and there is still something in it for the buyers of the calves. You look at the lamb market over the few years and that has been very consistent (price-wise) and that’s what we need for cattle.’’
How sustainable this price run for cattle could be is being questioned by many within the industry, particularly as official forecasts suggests the beef market could soften in coming months.
But feedback from agents suggests there is still a decent pool of farmers eager for replacement cattle, with many southern paddocks still not filled despite the mass sell-off of calves in the past week.
Despite buying more than 1000 calves out of the Western District last week, agent Andrew Whan of MWJ at Naracoorte, said he still had a list of clients looking for replacements.
Most of his purchases last week were for the Ogilvie Group, which is a volume supplier to a supermarket chain.
“No-one has said sit back or not purchase, but at the price rates we’ve seen there is a lot of cattle we haven’t bought to fill those replacement grass orders.”
More than 50 per cent of the calves sold were trucked out of Victoria, with NSW the hot buying spot.
The buying momentum is now flowing through to the prime market, forcing all cattle prices higher as restockers force feedlots and processors to compete harder for stock.
Based on National Livestock Reporting Service data, there was price jumps of 20-50c/kg for many steer and heifer categories on Monday, with some lines of lighter steers to the paddock showing surges of 100c/kg on pre-Christmas rates.
A meat buyer told The Weekly Times farmers now thought they were getting “cheap’’ steers at 440-460c/kg in the prime market compared to the record-breaking figures out of the weaner sales.
The recalculation of values by store buyers has helped carry the Eastern Young Cattle Indicator back into record territory.
On Monday night the EYCI was at the equivalent of 830c/kg carcass weight, a rise of 70c/kg in just a week as the stellar results for weaner cattle influence the prime market. Results from sales include:
IN THE heart of the Western District, Hamilton agents sold 10,434 calves over five days to average $1683 or a total of $17.56 million.
MORE than $8.6 million worth of weaner calves were sold at Casterton. The peak price of 644c/kg was paid for very light Herefords.
AT Naracoorte almost 4000 steers sold for an average of $1743 or 488c/kg and a further 1820 heifers averaged $1578. These two sales netted $9.8 million.
WANGARATTA’S weaner sale grossed $5.26 million, with steers averaging $1765, heifers $1592 and an overall average price per head of $1715.
THE Yea fixture sold 3439 steers and heifers for an average of $1766, or a total of more than $6 million.
AT Wodonga, three days of weaner sales grossed more than $11.24 million, with some vendors doubling returns seen same time last year.
Breeder Dale Sullivan, of Casterton, described the rates as “phenomenal” and said much of the money would be returned to the local town and businesses.
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