Bull rates expected to climb further on 2021 season

Experts says few bulls will be sold below $10,000 — but more affordable opportunities still exist. See the calendar and analysis.

Expectations couldn’t be set much higher as southern Australia enters a heady autumn bull selling season.

With weaner cattle sales of the summer pulling in prices $500-$700 above the rates of just a year ago, with many vendors recording steer averages above $2300, bull buyers are ready to open their wallets for replacement bulls.

The benchmark Eastern Young Cattle Indicator has eased off slightly, yet at 1134c/kg it remains a healthy 250c/kg above where it sat this time last year.

And market analysts are forecasting this will hold relatively firm, easing to around 1050c/kg in June, according to Global Agri-Trends’ Simon Quilty, or just shy of 1000c/kg, according to six analysts surveyed by Meat & Livestock Australia.

The trend for bull prices has mirrored the young cattle market in recent years, swiftly heading north.

Last year autumn auctions recorded sale many averages in excess or $10,000, but by spring, that figure had become the baseline for major studs.

An analysis by The Weekly Times in spring last year showed at least 20 major studs recorded bull price averages of more than $14,000.

Elders southern livestock manager and auctioneer Laryn Gogel said South Australian studs were gearing up for a big three weeks, opening the selling in the southern states.

“Most of the stud breeders are approaching this year in a humble way, all quietly confident that they will have that regular support from clients who will have a bit of spring in their step thanks to the money commercial cattle have made in the past 12 months,” Mr Gogel said.

He didn’t expect any significant upsurge in demand, given the SA herd size was pretty steady, but there was an expectation that average prices and the top end bulls would enjoy some momentum.

“Just how far that takes us, we don’t know,” he said. “I don’t expect quite the momentum of the Eastern State’s bull sales that went off like a box of fire crackers.

“But if stud masters do see just a bit extra this season, they will be extremely happy.”

Considering the prices for cull cattle and weaners – which for many averaged $2300 – Mr Gogel said most studs now had a $5000 base rate.

“In most (buyer’s) views, if they have $10,000 in hand, they are there to operate; however for some people with 10 or 15 cows, $5000 to $6000 is still a significant investment,” he said.

The highest demand was likely to come from self-replacing herds, looking for high to moderate growth bulls, with good muscle and milk attributes, along with calving ease and birth weight figures.

Mr Gogel said he did not expect to see high premiums on breed, or coat colour, but a focus on the genetics behind the cattle.

In fact key sales such as the Baker family’s Woonallee Simmentals, at Furner, tomorrow (Thursday) often were pack leaders when it came to top prices in early bull sales.

“They have a hell of a reputation and studs like that have invested a lot of money in their genetics,” he said.

The “quantum” leap in commercial cattle prices had put the topic of sustainability on everyone’s lips, he said.

“Even if it eases up a bit, it is still jolly good.”

While the nation’s herd rebuild continued; grass remained in paddocks, and processors continued to move product, prices would remain sustainable, he said.

“If you’re a gambling person, you’d have to think we’d probably seen the peak, but I don’t think we will see any dramatic falls; but it does depend too on what happens globally, and nobody can predict what will happen there.”

Retiring Ray White GTSM stud stock manager Michael Glasser, Albury, NSW, said he felt the “good cattle will sell very, very well for quite a long time”.

“I think we have to be mindful that quality will always make the money.”

For those not wishing to fork out top dollar for their genetics, Mr Glasser said there was still very good value bulls around.

“There are still a lot of opportunities out there, you might just have to shop around, shop a bit smarter”.

Lucy McEachern’s Hereford bulls at Wingiel. Picture Yuri Kouzmin

Even in early private sales at smaller studs, buyers haven’t held back.

A Mountain Valley Lieutenant-sired bull, Vice Admiral, sold at Taronga Poll Herefords open day last week at Paschendale, near Coleraine in Victoria’s Western District, for $15,000.

The bull was purchased by regular leading vendor at the Casterton weaner sales, Dale Sullivan, Shallum and it weighed 794kg.

Taronga’s Bill Lambert said the bull was the highest priced bull sold at the stud – by a margin of $7000 – and the average price for his bulls this year was $6266, up by $1527 on the year prior.