Southern saleyards flooded with store cattle

Store cattle numbers have surged at southern saleyards as producers offload stock early due to drought.

Store cattle have flooded into southern saleyards this week as producers quit stock early as the drought chews into feed, water and confidence.

At prime markets, cow prices have swiftly dropped too - by 40-50c/kg in a week.

Key indicators have all fallen this week, with the Eastern Young Cattle Indicator dipping 18c/kg to 651c/kg.

However, this remains about 11c/kg above where it sat this time last year.

All the other major beef indicators also fell, including restocker yearling steers, down 7c/kg in a week to 382c/kg.

The only upwards movement was in dairy cows, up 8c/kg to 266c/kg, still well behind processor cows at 295c/kg.

Last week the major South Australian selling centre, Naracoorte, held a store cattle sale where numbers ballooned from 1200 to 4000 in response to the drought, including many lines from Victoria.

Naracoorte’s PPH&S director Richard Harvie said producers were offloading any surplus stock to look after core breeders and finances were tight.

“Overdrafts are being increased, people are operating on an HiAce budget, not a LandCruiser one anymore,” Mr Harvie said.

The improved store prices of the past month had motivated the early sell off, he said.

The sale was a mix of types, with agents moving quickly to accommodate the bigger numbers as producers decided to sell after good results at Ballarat the week before, instead of face another potentially prolonged autumn break.

Prices, however, held to what vendors described as reasonable rates, with data crunched by Agrinous showing steers averaged 327kg and $1223 (374c/kg).

Heifers demand was weaker, meanwhile, as they averaged 308kg and returned $979 (317c/kg).

Matt Tinkler of Elders says a rain event could turn the market around.

While prices are soft now, livestock agents say one major rain event could quickly turn the market fortunes around.

Elders state livestock manager, Victoria and Riverina, Matt Tinkler of Elders said despite the recent price drop there was still optimism in the market.

“Everyone is keeping a close eye on the cyclone (Tropical Cyclone Alfred) to see what might arrive in the way of rain,” he said.

Mr Tinkler said the current market metrics were a supply and demand scenario, and people had sold off cattle because of the dry conditions.

“Water is still an issue with producers in a lot of areas,” he said.

The availability of water was cited as a reason for some of the larger yardings.

“People are conscious of conserving food in case we go into a dry weather pattern.”

Highlighting the difficulties many commercial and even stud producers are facing when trying to hold onto their stock numbers, Mortlake Angus stud, Te Mania, is also feeling the pinch with the season.

The Western District stud has water shortages and water quality issues, with the stud resorting to extreme measures to look after their core stock.

In the face of scarce supplies, Edward Gubbins said Te Mania’s older cows had been allocated the property’s poorer quality water, under vet supervision, and younger stock were being supplied with town mains water.

“We have pumps going everywhere, it is hard and hurting the region a great deal, it is the driest we have seen this property since buying it 23 years ago,” he said.