New year weaner calf sales set to attract record rates

Prices are expected to reach boiling point at southeast Australia’s famed new year calf sales — see expert predictions.

Strong demand and limited supplies are expected to benefit sellers at the famed new year calf sales.

Anticipation is at fever pitch for Victoria’s weaner calf sales next month.

The trifecta of high demand, low supply and exceptional seasonal conditions throughout eastern and southern Australia are set to combine in a perfect storm that could see prices boil over and records continue to tumble.

The sales, which traditionally kick off in late December and make their way around the state into the New Year, are attractive to volume buyers seeking large numbers of high quality calves.

More than 75,000 cattle are expected to go under the hammer across 40 sales over eight to 10 weeks.

Excitement is mounting among vendors and agents who are intrigued to see how high prices will go given the January sales historically set the tone for the year.

Mortlake Agents Association outgoing president Matt Baxter, of Charles Stewart and Co, expects prices to be “very, very dear” hazarding a guess that buyers would struggle to get a calf under $2000.

“We thought the (market) was dear last year and as the weaner sales started they got dearer,” Mr Baxter said.

“I don’t know if that’s possible this year but these blokes sell once a year and the calves are out of some of the best commercial herds in the country.”

Current record prices have tempted some vendors to break tradition and take the money early by selling stock prior to the sales but most have held on with numbers in line with last year.

Strong demand is expected from southeast South Australia, Gippsland and from throughout NSW and southern Queensland following widespread rain and better seasonal conditions than last year. Local feedlots, backgrounders and grass finishers will also be active sourcing cattle for forward contracts.

Elders Albury livestock manager Brett Shea described the current spring conditions as “massive”. “There is a lot of weight in these weaner cattle. Very few cattle will present under 330kg,” he said.

Elders and Nutrien will have a combined mixed breed sale on the one day at Barnawartha this year, condensing the North East sales into a three day fixture instead of four making it more attractive to buyers coming from further afield.

New England volume buyer Simon Newton, Walcha, NSW, is hoping to secure large runs of Angus weaners for multiple clients.

“You will find there will be a number of buyers from New England and the northwest looking to secure cattle because there is a shortage,” Mr Newton said.

Mr Newton said seasonal conditions up north were the best they had been in a decade and buyers were keen to source cattle but faced strong local competition.

“We thought January 2021 was dear. I think January 2022 will blow that out of the water. It will be extremely good for the seller.”

Mr Newton said despite margins being “close for comfort” everyone was still making a dollar, even at these high prices.

“People determine what they are happy to spend on a weaner when they are selling in the same markets as feeder steers or kill steers,” he said.

“They have their margins. If they are selling at the same time, they do sums on what they deem as equitable to spend.

“It’s the perfect storm. Great season, high demand, low supply. Anything could happen.”