Ballarat prime cattle: Prices rally

Feedlots and commission buyers jostled with southern restockers for a share of what was an impressive line-up of 6000 cattle today. See the results.

Buyers have failed to be spooked by the latest prime cattle shenanigans, still paying over 400 cents per kilogram liveweight for pens of Angus weaner steers and to $2190 for grown steers at Ballarat today.

Price results across the 6000-head feature yarding of steers proved remarkably resilient as feedlots and commission buyers jostled with southern restockers for a share of what was an impressive line-up of cattle that showed plenty of breed quality and weight.

In a week when the prime market faltered again by the tune of 20c/kg to 50c/kg, it meant this store market was operating at a reasonable premium to current offers for finished cattle.

Or in the words of South Gippsland agent Terry Ginnane, it was a return to the “good old days’’.

“It’s back to the good old days of store cattle making more than fats,’’ he said: “But that could be short-lived and the past few weeks in the prime market (of rises then big price falls) have been abnormal.’’

Ballarat cattle sale Feb 16 2024. Opening run of heavy steers. Picture: Jenny Kelly

Agents and buyers said farmers had absorbed a lot of confidence from the rapid price gains of the beef market in January, and were prepared to stick with cattle as they could now see the upside potential of the industry.

“I think most people acknowledge that processors do seem to be able to pay more (for slaughter cattle) than they currently are, and when supplies slow down the price will go back up again,’’ Mr Ginnane said.

The sale opened on a run of grown steers that weighed up to 728kg, with local agent Gerald White, TB White & Sons, describing it as arguably the best line-up of steers he had seen at Ballarat over his long career.

After delaying selling cattle during the slump, Adam Greenbank, Carngham, was happy to receive $1690 for feeder steers, which weighed 490kg. Last year he was quoted less than $1000 for them. Picture: Jenny Kelly

The following price results were recorded for the first 4200 head sold, with agents still selling weaner calves when this report was compiled.

•133 heavy grown steers 600kg plus to a top of $2190 and averaged $1530 at an average cost of 302c/kg lwt;

•993 grown steers 500-600kg to $1970 and averaged $1737 at 322c/kg lwt;

•1831 feeder steers, 400-500kg, sold to $1770 and averaged $1535.50 at 340c/kg lwt;

•1129 yearling type steers, 300-400kg, sold to $1460 and averaged $1314 at 350c/kg; and

•73 light weaner steers, 280-330kg, sold to $1310 and averaged 362c (with sale still ongoing).

Feedlots were the buying force behind the lead runs of grown heavy steers, led by processing group Teys, which was purchasing for its feedlots including Charlton; Thomas Foods International; Mort & Co; Midfield Meats; plus commission buyers holding feedlot orders.

With this sale the biggest store event of the week, and following from Mortlake, which had 5000 cattle on Thursday, there was a full roll-call of major commission buyers at Ballarat including Duncan Brown, Andrew Lowe, Campbell Ross and Damian Whyte.

Although they couldn’t all go the pace. Mr Whyte said he was unable to get a start, as his clients weren’t prepared to pay more than 400c/kg landed home for calves in the current conditions.

“We came down thinking we would have a chance but prices have held up really well, particularly on the younger steers,’’ he said.

In dollar-per-head terms the top price of $2190 was for 22 grown Angus from Spring Creek Organics, which were basically bullocks at 728kg, working out at 300c/kg.

But in cents-per-kilogram terms the hot spot of the sale was weaner steers, particularly those under 350kg liveweight.

Central Victorian breeder Dennis Connors, Nulla Vale, sold his lead pen of Angus weaner steers at 385kg for $1320 (342c), but then his much lighter 300kg calves still made $1300 (412c/kg).

“It shocked me, and it was fairly common to see lighter steers up at that money,’’ he said.

Another agent observed that it was taking “a damn good calf to make $1400 and a lot less of a calf to still make $1300.’’

On the restocking front there were several agents from South Gippsland, local Ballarat agents were purchasing, and there was cattle sent to Wangaratta and further north into NSW.