Huge yarding of 4500 store cattle tests prices at Wangaratta

The first real test of store prices in northeast Victoria has produced surprising results. Read the analysis here.

Southern buyers put some sweet price spots in the feature run of steer calves at Wangaratta today, however some sour notes crept into the auction for light heifers.

The yarding of 4500 was the biggest test the store market has faced in northeast Victorian cattle country ahead of spring, and the centre was packed with agents and farmers keen to see how the market would unfold.

The huge crowd at the Wangaratta spring feature sale.

It was mostly good news in the steer run, with Angus weaners selling to $1400 and holding a stronger trend line of 320c to 360c/kg liveweight over the majority of sales.

Very light steers reached 397c/kg or $620 for 156kg calves, the premium reflecting the fact they displayed a much bigger frame size than their weight indicated.

For local producers like Graeme Norman, it was a better than expected result after a nervous lead-in. The Normans actually kept some of their steers at home due to the uncertainty of trading conditions.

“We thought we won’t bring them in unless they are good enough as we didn’t know what was going to happen, that was the extent of our thinking,’’ Mr Norman said.

The Normans’ lead pen of 22 Angus steers, EU-accredited and at 415kg, the heaviest calves in the yarding, sold for $1400 or 337c/kg liveweight.

“We didn’t think we would get that money,’’ he said.

The success of the steer sale was built around three key drivers – feedlot activity from JBS on the lead pens of heavy steers, followed by some volume southern restocking orders led by Nutrien agent Greg Bright from Casterton who purchased 400 calves for branches in the southwest, with light calves then underpinned by local northeast restockers.

Greg Bright from Nutrien at Casterton was a welcome sight at the Wangaratta weaner sale today buying 400 steers.

It meant there was a complete change in buying power at this major weaner sale compared to recent years when northern orders dominated.

All the key commission buyers were at Wangaratta, including Andrew Lowe, Duncan Brown, Damian Whyte and Graham Ward.

But they struggled to fill single loads due to the stronger than anticipated prices, particularly with freight costs to go on top.

Collectively they had a much more sombre view of where the cattle market was headed, telling The Weekly Times the season was starting to close-in up north.

“People seem to be in a bit of a (seasonal) bubble here; I don’t see any reason to be getting excited,’’ Mr Lowe said.

The strength of the sale produced another unusual buying twist, with online bidders behind the pace and AuctionsPlus not purchasing any lots and rarely even throwing in a bid.

Elders auctioneer Oliver Mason said the steer run had performed “above expectations’’, particularly for lighter calves.

“I thought once we came off the heavier steers and the feedlot competition dropped off we would be in trouble, but it didn’t play out like that,’’ Mr Mason said.

“The southern orders were excellent and then local agents were able to pick-up the slack so there wasn’t many holes in the sale at all.’’

In dollar per head, terms only a few pens of steers made above $1300, with the bulk of sales for lines of calves weighing above 270kg from $1000 to $1250.

However, the sale quickly lost momentum in the heifer section, with light calves that fell outside feeder or breeder support discounted down to just 200c/kg liveweight.

It meant there were 250kg Angus heifers struggling to get support over $500.

Chris and Chantelle Gorman from Allawah at Savernake won the best-presented pen of cattle with a cut from their 53 Angus steers at the Wangaratta feature weaner sale.

There were still isolated strong sales for noted lines that attracted breeding interest, with the best price of $1390 also going to the Normans for their 20 Angus that weighed 362kg or 384c/kg.