Early weaner sales have seen prices down as much as $400 on last year

The bulk of the famed weaner sales are less than a month away but early fixtures show producers will not see last year’s rates.

Victorian weaner producers are bracing for falls of up to $400 for their annual drafts of cattle as diving prime prices take a toll.

With the benchmark Eastern Young Cattle Indicator dipping 152c/kg in the past month and the feeder steer prices sliding 63c/kg, the industry is bracing for weaner prices to follow suit.

Last week’s Naracoorte’s weaner sale – where 4782 steers and 566 heifers sold over two days – gave a pointer to what could happen in January.

Analysis of the Naracoorte prices by AuctionsPlus showed the average weaner price was down by 153c/kg, to 537c/kg. Last year, weaners averaged 690c/kg at the same sale.

Prices were back for all weight ranges with the least affected being the heaviest weaners weighing more than 400kg, which were down 127c/kg.

The lightest weaners, up to 250kg, showed the biggest price fall of 179c/kg, averaging 653c/kg this year compared with 830c/kg last year, while the 350-400kg steers averaged 505c/kg this year compared with 654c/kg last year, or a fall of 149c/kg.

Weaner vendor Rod Manning from Davilak at Mansfield, pictured with his son Rodda in 2019, will sell several hundred calves at Wangaratta in January and hoped the market would reset before then. Picture: Dannika Bonser

Elders Naracoorte livestock manager Josh Reeves said there was generally a price step back of $200 compared to 12 months ago.

“Last year, everyone seemed to have $2000 in their pockets and this year, it was $1800 whether steers weighed 250kg or 320kg,” Mr Reeves said.

“The prices we saw were what is happening right up and down the eastern seaboard – they held up pretty well and are still very good.”

What was noticeable was that feedlotters did not set the pace, Mr Reeves said, and while they were active, were “not the driving force”.

Nutrien Ag Solutions Yea agent Chris Pollard said he did not think anybody would lose money from the calves they bought at the last weaner sale, “but I don’t think they’ll make much money”.

“If they go in and buy at $300 or $400 cheaper than last year then they’re still going to have money in their pockets but it’s a backhanded way of making a profit,” Mr Pollard said.

“People for the last three or four years have made a lot of money out of livestock and we all knew it wasn’t sustainable to be making the margins we’ve seen over the last couple of years.

“It had to narrow down.”

Weaner vendor Rod Manning from Davilak at Mansfield will sell several hundred calves at Wangaratta in January and hoped the market would reset before then.

“The fundamentals of the cattle market are still good and I feel like when the northern season gets going after floods, they will be in buying,” Mr Manning said.

“But even if the market comes off $200 to $300, we will all still be profitable.”