Rates ‘surprise’ agents at Mortlake’s big cattle sale

The biggest store cattle sale in Victoria was always going to test the market, but the rates have shocked some in the industry.

The store market threw out a bewildering surprise today with dearer than expected steer prices at Mortlake as the sale defied the meltdown being recorded for slaughter cattle.

Lines of lightweight Angus steers sold for more than 500c/kg liveweight multiple times, while the majority of the good black calves weighing over 280kg comfortably trended above 400c/kg

Todd Jamieson from Barongarook near Colac paid 440-504c/kg for Angus steers weighing 266kg at the Mortlake store cattle sale.

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Mortlake was the biggest test the Victorian store market has faced since the prime market started spiralling down, with about 4500 head offered.

This number was down from the initial advertised yarding of 5800 head, showing how people had anticipated a very tough day.

But it didn’t happen, with steer prices either similar to a fortnight ago or dearer on some of the lighter calves.

The sale showed enough spark that several agents, including those from Leongatha where prices took a check last week, were left scratching their heads.

“What the! How are you going to explain this,’’ one agent queried The Weekly Times.

Even agents in the thick of the action, like Alistair Nash from Charles Stewart & Co at Colac, acknowledged the strength of the market was difficult to decipher.

“It’s 15c to 20c/kg dearer than most people expected and I’m stuffed if I know why – there is no real good reason for it to happen,’’ he said.

Owen Whiting from Noorat paid 444c/kg for Angus steers weighing 282kg at the Mortlake store cattle sale today.

The question many at the sale were asking themselves was if the prices were a sign the market had bottomed and buyers were now prepared to come in and purchase at rates much lower than the past two years, or if the Mortlake sale had been cushioned by the good season in the south and some very good quality lines of cattle.

And it should be noted that there was gaps in the market for steers that were not favoured breeds or were secondary blacks (showing crossbred traits and lacking bone).

There were Murray Grey steer calves at 254kg that sold for 290c/kg.

Another example of the impact of breed was vendor Geminca receiving 488c/kg for 16 Angus steer calves at 222kg, but their 20 Speckle Park steers at 209kg made 352c/kg or almost 130c/kg less.

Competition was strongest on the feature lines of Angus over all weight grades, and it came from a big crowd of local southwest and South Australian agents buying for areas like Keith, Penola and Mt Gambier.

There was no northern support, and regular commission buyer Duncan Brown was a no-show.

Feedlots led the action on the opening laneways of heavy steers, paying from 360c to 420c/kg liveweight for most.

Some notable sales included 390c/kg for Woodlawn Pastoral’s pen of 46 EU-accredited Angus which weighed 494kg, equalling $1927.

EU-eligible steers were well supported by processor TFI.

Vendor John Murphy, Bernleigh, was pleasantly surprised to average over 400c/kg for his EU steers which made 396c to 408c to push the average to more than $2000.

“We came and had a look at the last sale here and things have got a lot worse in the fat market since then so we certainly weren’t expecting over 400c – this has been a great result all things considered,’’ he said.

Western District agents did mix it with the feedlot buyers at times, an example being Camperdown agent Clarke Roycroft who paid 396c/kg for 51 Angus steers from vendor Drysdale that weighed 506kg.

In the younger weaner and yearling type steers, rates of 420c to 480c/kg were common for the feature drafts that offered decent lines.

Jarrad MacDonald and Peter Allen from South Boorook at Mortlake sold a run of black baldy steers, 220-293kg, for 446-498c/kg at the Mortlake store cattle sale.

Among these was South Boorook who sold four consecutive pens; 13 Angus at 293kg making 446c/kg; 19 black baldy at 293kg at 450c/kg; 23 black baldy at 258kg for 484c/kg; and 24 at 220kg making 498c/kg.

Peter Allen, South Boorook, Mortlake, said the sale had benefited from the solid autumn break in the area, but was hopeful the results were also a sign the market may have bottomed out.

“There is a lot of locals here and we’ve had one of the best starts to an autumn ever,’’ he said.

“I follow the EYCI like a hawk and noticed on Tuesday it had ticked up on and Wednesday it did the same. The market might have found its floor.’’

The buying ranks for heifers did thin out and the opening lane way of older heifers with weights were selling from 312c to 370c/kg liveweight.