New rain set to lift cattle market sentiment and slow supply in winter

New rain is expected to lift cattle prices and slow supply as farmers continue to offload stock to protect their businesses.

Drought-affected farmers are continuing to offload stock, but rain has lifted sentiment for cattle prices across barren regions.

The National Young Cattle Indicator currently sits at 385c/kg liveweight after 22,892 cattle sold last week. The Eastern Young Cattle Indicator is at 717c/kg carcass weight after 13,564 cattle sold in the past week — it’s up 40c/kg on a month ago and 107c/kg higher than the same time last year.

Lewis Walter, 9, with dad Rob Walter at their Strathkellar farm. Picture: Rachel Simmonds

Strathkellar farmer Rob Walter has sold 130 steers recently, with 50 yearling heifers destined for Mortlake’s next sale. His lighter steers, 277kg, made 520c/kg.

“(The yearling heifers) would’ve struggled to make $800 before the rain and they’d probably make $1000 after the rain.

“If I could’ve, I would’ve kept them all, but I have to be realistic about what I can do. Back in previous droughts, they used to shoot cattle, now there’s a very good market to sell.”

He recorded 40mm of rain during the past week and had secured vetch hay and pellet orders.

“It’s off the truck and into the cows, so to speak, there’s not a lot laying around,” Mr Walter said.

“We’ve ordered some cattle pellets, because it just doesn’t rain grass, especially not in late June and July.”

He believed the market would pick up again with the incoming rain. He just finished joining 70 yearling heifers, and had 190 autumn calvers on the ground with 130 spring calvers expected in August.

“You have to look after your cows and calves at this time of year, and the biggest thing is to get them back in calf and get calves on the ground,” Mr Walter said.

“Otherwise there’s ramifications two years later.”

Charolais cattle at CVLX, Ballarat. Picture: Rachel Simmonds

Nutrien Colac livestock agent Phil Douglas said he believed the recent downpour of up to 70mm in southwest Victoria would slow store market supply in the short-term, and boost farmer sentiment.

“The rain will lift confidence, people won’t go out straight away. I think a few people will hedge their bets and purchase a few sheep or cattle,” Mr Douglas said.

“It’ll change our whole outlook now. There’s no doubt about it, we’ve put up with this for a fair while now and this is the best rain we’ve had for nine months.”

He said Colac Regional Saleyards’ store sale last Friday was “solid”, with lighter heifers standing out from the yarding. Feeders chased better heifers while bidders from western Victoria and the North East looked for lighter cattle.

“It wasn’t the greatest yarding of cattle but the nice lines of steers and heifers sold well,” Mr Douglas said.