Wodonga, June 26: Light steers push above 500c/kg
Lightweight steers reached more than 500c/kg at Wodonga amid falling cattle supply and rising prices in the store market. See the full report.
Falling cattle supply and rising prices have become the talking point of the store market as the wet weather shifts the conversation away from drought and the forced sell-off of calves.
Numbers plummeted to fewer than 1500 cattle at Wodonga store cattle sale on Thursday, helping fuel a 20c/kg-plus price rise which had the best lines of light Angus steer calves trending either side of 500c/kg liveweight.
Angus weaner steers weighing 315kg sold to $1490, with the main run of mixed breed light steers calves in the 200-280kg weight bracket averaging $1071 to be $50 ahead of a fortnight ago, according to saleyard data.
The quick drop in cattle supply was noted by auctioneers like Craig Schubert of Schubert Boers, who told the crowd the market was quickly starting to see the fallout from the big sell-off of cattle during summer and autumn.
“Numbers are decreasing rapidly – we’ve (Wodonga store sales) have gone from nearly 4000 cattle a fortnight ago and 6400 a month back to less than 1500 yarded today,” he said.
“There is going to be a quick catch-up in terms of supply and what we are seeing here is what is likely to be ahead for the industry.”
The yarding was very wintry with very few older steers or heifers with weight available, the sale dominated by lighter calves under 330kg and the majority below 260kg.
Despite the low numbers of cattle exporters Thomas Foods International and JBS were both in attendance and dominated on the few pens of heavier steers, paying to $2020 for 11 black baldy seers from K and K Smeaton at Howlong that had a displayed weight of 453kg (460c/kg).
These orders also stepped in and bought the lead pen of Euro-sired steers, paying $1490 for Limousin-cross black calves which weighted 345kg (431c/kg) – local agents surmising it reflected the shortage of heavy steers in general and the struggle JBS and TFI were having in trying to fill a load of suitable weighted cattle out of Wodonga.
According to saleyard data, just 114 steers in the offering weighed over 330kg today, representing a low 8 per cent of the total yarding. The top rate for heavier steers was 480c/kg.
In the lighter steers the buying power shifted to the south with local traders starting to step back into the market as paddocks green up ahead of at least the promise of some spring after more rain.
Elders Albury agent Declan Budge paid $1010 for a line of 44 young Angus steers from Coysh Farms which weighed 205kg to come close to costing $5/kg.
He said this latest rain had given some southern traders the confidence to start putting stock back into paddocks.
“There is just a general feel of optimism now and a few people are willing to gamble on the market now, particularly as if the season in the south shapes up and the north remains good the cattle market could have a fair way to move up (price-wise),” Mr Budge said.
Some of the key sales in the weaner steer section included:
RT&K Hooper, Greta: 33 Angus, eight months and 315kg, $1490 (473c/kg); 15, 291kg at $1340 (460c/kg); and 14, 269kg at $1265 (470c/kg).
Tim Bourne, Riddles Creek: 18 Angus, 270kg, $1260 (466c/kg).
Brooks Haulage, Sandy Creek: 12 Angus, 266kg, $1250 (470c/kg).
Where the market marched over 500c/kg was on some bigger lines of very light Angus steers that displayed good breeding and frame but lacked weight due to the tough conditions.
Some of these sales included Elwyn Land from Cudgewa, 31 Angus steers at 219kg which sold for $1110 or 506c/kg; JV and G Yensch, 32 Angus at 218kg for $1100 (509c/kg).
The results show how the market was revolving around $1000 a head for any calves that showed some breed quality and potential.
Price rates for coloured steer calves was more mixed, ranging from 340c/kg to 420c/kg, noting a lot of these calves were mixed and often in smaller lots of less than 10.
The heifer market was also patchy reflecting very mixed quality and very few decent lines, which kept a cap on the overall price gains compared to a fortnight ago.
Mixed breed heifers in the 200-280kg weight range sold to 383c/kg and averaged 326c/kg to be just a few cents dearer than earlier in the month. But then there was some heavier heifers selected for joining which sold above 400c/kg at times.