Record numbers of cattle go under the hammer but the market holds up

A surge in cattle numbers throughout NSW and Victoria has driven prices down, but agents say the market is holding up and there are still small margins.

A surge in cattle numbers throughout NSW and Victoria has driven prices down, but agents say the market is holding up and there are still small margins.

After a record sell-off of 8731 cattle at the Wagga Wagga, NSW, prime market and 3598 at Mortlake on Monday, with more big sales scheduled this week the benchmark Eastern States Young Cattle Indicator has dropped 26.78c/kg in seven days to settle at 697c/kg carcass weight on Tuesday morning. However it is still 90c/kg better than the same time last year.

The National Young Cattle Indicator has gained ground to settle at 380c/kg liveweight showing an increase of 79c/kg in the past week off a headcount of 35,173.

Elders Wagga Wagga territory sales manager Henry Booth said prices had started to drop across the board, except for Angus feeder steers which held “very strongly”.

Mr Booth said prices were 20-30c/kg cheaper across all categories at Wagga Wagga.

“We’re in record territory and have been toying with it for the past month. It feels like it will maintain a heightened levels until we see a change in the season or the numbers do become reduced,” Mr Booth said.

Buyers and livestock agents line the rails at WVLX Mortlake cattle sale. Picture: Yuri Kouzmin

It was a similar story at Mortlake in Victoria’s Western Districts which is grappling with dry conditions.

WVLX site operations manager Jake Last said the selling centre achieved a record yarding of 3598 cattle at Monday’s prime sale, which surpassed the previous highest yarding by about 50 or 60.

Mr Last said a few records had fallen in close succession in the past couple of months.

“We have broken records three or four times,” he said. Prices fell 15-30c/kg across all categories on Monday.

Mr Last said the saleyards had started capping the draws at 3000 due to the excessively high numbers.

“Producers have to find other options if they are desperate to sell, and in this area, it is dry with no rain in sight for the next six to eight weeks,” he said.

The numbers are expected to continue with Hamilton holding a special store sale on Thursday with 2000 cattle, while 3000 will be on offer at Mt Gambier in South Australia on Friday.

And Mortlake will yard 6000 cattle at its store cattle sale next week.

Meanwhile, at Wodonga they are expecting 6000 cattle at its store sale on Thursday.

Producer Michael Gadd from Walwa said he’s “never seen the number of trucks of hay coming in and the number of cattle trucks leaving the district”.

“It’s the right decision to sell early for many but it does cut into cash flow both this year and next.”