Ballarat store cattle prices soar on the back of tightening supplies

Prices exploded as store cattle numbers tightened at major southern markets this week, including Ballarat on Friday.

Sharp price rises were recorded for store cattle at Ballarat on Friday, with gains of 100c/kg-plus linked to FOMO or ‘fear of missing out’.

The yarding of 2135 head was half the size of last month’s sale, fuelling fierce competition among buyers. With numbers tightening across all major selling centres, the store market has shifted to a new gear over the past week.

At both Ballarat and Mortlake on Thursday, quality Angus steers traded from a strong 500c/kg base. Heifers posted some of the most dramatic gains, coming off a lower price point but now attracting more than 400c/kg for top-quality lines.

“We are getting somewhere like it now (price wise),’’ said Springbank producer Brendan Simpson, Tiarna Angus, after his line of 37 grown Angus steers sold for $2820 on an average weight of 574kg, working out at 491c/kg liveweight.

“There was the option to take them onto kill, but why would you (at that money),’’ he said of the steers which sold to an export feedlot order.

But it was the lighter calves which really exploded in value, Angus steers less than 300kg selling above 600c/kg at times during the Ballarat auction.

Brendan Simpson from Tiarna Angus at Springbank sold the opening pen of 37 grown Angus steers at Ballarat.

A comparison of price results from today’s market compared to a month ago tells the trend of how dramatically the store market has lifted.

Based on data from the CVLX, the average price for steers by weight was:

•200-280kg Angus weaners to a top of $1600 and average of $1337, average cost 541c/kg from a high of 618c/kg lwt;

•280-330kg Angus weaners to $1710 to averaged $1593 at 518c/kg lwt; and

•330-400kg Angus weaners to $1950 average $1886 at 501c/kg lwt.

The young heifer results were:

•200-280kg weaners to $1270 and an average of $1098, selling to 495c for an average cost of 448c/kg lwt;

•280-330kg weaners to $1370 average $1297, averaging 439c/kg lwt.

Behind the market was a lot more local and southern buying strength including from Naracoorte and Penola in South Australia, through to the Western District. The rapid rise in values meant some of the major commission buyers like Duncan Brown and Campbell Ross were kept quieter than usual as they were forced to reassess the cost of transporting cattle north at the higher buy in money.

Alexander Veal, 5, from Clunes at Ballarat on Friday with his grandmother, Marilyn Veal.

Agents like Matt Treglown from TCD at Penola said people who were running low stock numbers were getting apprehensive about getting some stock in paddocks before the anticipated spring.

“I think it is FOMO (fear of missing out) at the moment,’’ he said: “Our area has done tough and it is still tough enough but some people are starting to step into the market.

“It all comes down to the amount of cattle which have been sold and have left areas like the Western District.’’

Other buyers were more blunt, expressing surprise at how quickly the market had rallied on a season which is still highly dependent on more wet weather and timely rains in August and September.

“It’s grass fever without the grass,’’ quipped one feedlot buyer.

It was feedlot buyers which put a healthy price floor in the market for any heavier and grown steers and heifers. Bidding for the main run of Angus steers weighing 400-500kg reached $2500 and averaged $2180 at an average cost of 494c/kg, with some feature pens over 500c.