‘It’s incredible’: Cattle prices surge 100c/kg at Wodonga
There have been strong gains of up to 100c/kg at Wodonga's cattle market, as export demand and spring feed prospects drive prices.
There was a massive step-up in store stock prices at Wodonga on Thursday as looming spring feed and much higher dollar returns for export and feeder cattle were factored into the market.
There were gains of up to 100c/kg compared to a fortnight ago – some regular sale watchers declaring it as one of the sharpest price increases they could recall in such a short time period.
The average result for young steers in the 200-280kg liveweight range was 560c/kg, compared to 443c/kg at the previous market held a fortnight ago. The top cents-a-kilogram rate was 688c/kg which came from a $1300 a head pen of light Angus calves which weighed 189kg.
Heifers sold to 490c/kg and all the main weight grades averaged over 450c/kg, according to data from the NVLX.
Supporting the price surge was a better quality yarding with this week’s sale featuring some feature one-mark line of Angus cattle, whereas the last Wodonga sale was a very scrappy winter line-up.
But even acknowledging the difference in quality, the level of increase still surprised many.
“I’ve never seen a jump like this,” said North East agent David Meehan.
And the remark from agent Dan Ivone from Myrtleford was: “How can a market change so much in just a week or so? It’s incredible.”
Driving the market was feedlot activity on heavy steers and heifers and then much punchier demand shown by restockers.
Elders had the main runs of cattle in the sale and auctioneer Brett Shea said the whole tone of the market had shifted.
“We have seen a significant upward price movement and there is certainly an appetite out there now for cattle – people don’t want to miss out,” Mr Shea said.
“A lot of cattle traders and backgrounders from southern Australia didn’t buy a beast between March to June (due to the extreme dry) and that is now becoming a huge driver of demand.”
From a restocking perspective, Mr Shea said he could see two distinct patterns emerging – finishers wanting young cattle with maturity to take advantage and what could be a short flush of spring feed, and people buying to dollar-a-head limits to try and get some stock back into paddocks which was creating big cents-a-kilogram price premiums for light calves again.
The traditional pattern of light calves commanding the highest cents-a-kilogram rates certainly played out at Wodonga.
The following is a breakdown of price averages by weight:
STEERS under 200kg to a top of 688c/kg and average 588c/kg (compared to 459c/kg a fortnight ago);
STEERS 200-280kg to 670c/kg and average 560c/kg (against 455c/kg);
STEERS 280-330kg to 600c/kg and average 527c/kg (against 498c/kg); and
STEERS 330-400kg to 590c/kg and average 548c/kg (compared to 437c/kg).
Feedlot demand was behind the strong price increase for heavier cattle, with exporters Thomas Foods International and JBS claiming all the lead pens of Angus steers.
They paid more than 500c/kg for the main lines with decent numbers in a pen, to a peak of 590c/kg for 42 medium weight Angus steers weighing 330kg on a bid of $1950. The top dollars outlaid by these feedlots was $2400 for the lead pen of the Gem Brae Ag steers bred by the Follett family who run country in NSW and Gippsland, with these steers sent in from their Finley property.
Gem Brae had over 200 Te Mania blood steers and heifers in the sale. Their top of $2400 was for 25 steers weighing 452kg or 530c/kg, with values continuing to rise down the line as weights dropped. It was their 42 calves at $1950 which made 590c/kg.
Jake Follett said having country at Nyngan, Finley and in South Gippsland had helped them hold cattle and ride out the worst of the prices in the autumn.
“We had been hanging on a bit waiting for the cattle market to kick,” Jake said.
“Now our Nyngan country has got a bit dry so we’ve moved more cows to Finley so we went through and took out the lead 220 or so steers and heifers – we will have another run in a month or so.’’
The Gem Brae heifer portion sold to $1880 for 31 Angus which weighed 416kg (451c/kg); 39 at 363kg made $1775 (488c/kg); and 27 at 308kg sold for $1385 (448c/kg).
There was also another notable line of Angus heifers in the sale from JA Robinson of Rennie. Grown heifers with plenty of frame and pregnancy tested empty to give feedlot buyers confidence (they had never been joined) sold for up to 490c/kg.
The results were: 25 heifers at 341kg for $1650 (483c/kg); 53 at 304kg for $1490 (490c/kg); 33 at 286kg for $1385 (484c/kg); and 30 at $1160 (467c/kg).
