Drought takes hold but cattle prices tipped to climb higher

Cattle prices are defying drought conditions, with strong processor and restocker demand pushing values higher.

Cattle prices are forecast to rise by at least another 5 per cent, fuelled by tight supply and strong processor demand.

The prediction in the Australian Bureau of Agricultural and Resource Economics and Sciences commodities report published on Tuesday suggests prices will increase to 639c/kg carcass weight in 2025-26, compared to 606c/kg in 2024-25.

However, values are already overwhelmingly ahead of the game, with the Eastern Young Cattle Indicator at 717c/kg on Tuesday and as high as 734c/kg at the end of May.

ABARES cited tight supply and strong processor demand, with domestic beef prices expected to remain elevated as producers rebuilt herds.

Elders state livestock manager for Victoria and the Riverina, Matt Tinkler, said there was currently a strong market and excellent demand from northern restockers.

“There is nothing like a bit of rain (in the north) to promote the market, and we have seen that element come into it,” Mr Tinkler said.

Buyers gather at the Wagga Wagga Livestock Marketing Centre for another large yarding of cattle. Picture: Nikki Reynolds

He said predicting where the market might go next was considered “the million-dollar question,” but the signs at present were positive.

Mr Tinkler said vendors from Victoria and the border region were seeing support from buyers well into Queensland and Longreach who were rebuilding herds and seeking restocker cattle.

“The price has been the one shining light in a dry year, and it has allowed people to make their decisions a lot easier,” he said.

Southern NSW farmer Tony Rutter from Tarcutta sold Angus cattle at the Wagga Wagga market on Monday and said the predictions for higher prices would likely play out, but it was all dependent on rain.

“A lot is hinging on this rain that is forecast on the weekend. If we get the rain and South Australia gets it too, that will put more positivity into the market,” Mr Rutter said.

On Monday, he sold cows for 318c/kg, heifers for 340c/kg and heavy feeder steers for 400c/kg.

Walla Walla farmer Cameron Odewahn recently sold at Wodonga and said to get an extra 50c/kg above what was expected was excellent in a dry season.

“We sold an older bullock that made more than $3000,” he said.

His 15-month-old yearling heifers and steers that were Angus cross averaged 404c/kg.

Vendor Bill Hotson pictured at the Wodonga market. Picture: Jenny Kelly

Chiltern farmer Bill Hotson said for good young steers the market was tracking incredibly well.

“I’m confident that people who have good stock for the future will get paid pretty well, but of course we need rain.”

Mr Hotson recently sold all of his Angus steers, averaging 300kg with the tops making 447c/kg.