Where prices are dearer for livestock despite FMD threat

It’s been price fall after price fall for livestock markets, but there are indications rates could be about to turn around.

The livestock sector is shrugging off its crisis of confidence as prices regain ground coming into spring.

The benchmark Eastern Young Cattle Indicator lifted 27c/kg in the past week to close on Monday at 920c/kg carcass weight while the trade lamb indicator jumped 94c/kg in the same period.

Both store and prime markets have gained ground, albeit some of the back of limited offerings.

Wodonga cattle sale.

Nutrien-Paull and Scollard livestock agent Tim Robinson said prices at the Wodonga store cattle last week were “definitely better” than the previous week as restockers ventured back into the market.

“The talk among the crowd was that the market was between $100 to $200 dearer (than a week earlier) and potentially more in places,” Mr Robinson said.

“People have seen the correction in the market and thought ‘right we can afford to buy at this price’ so they’ve come back in and created more competition.

“It is reflective of the good rainfall in a lot of areas and people can see that spring is just around the corner.

Mr Robinson said the threat of foot and mouth disease “has settled in with people” and they had realised they had to “continue best practice and still do business.”

“People still need to buy cattle and farm and operate, we can’t all just stand still on the risk of something,” he said.

Meat and Livestock Australia’s Leann Dax said last week’s Wagga Wagga prime lamb sale “gained pace”. “Good quality domestic lambs were notably dearer while extra heavy lambs were keenly sought, helping push prices considerably higher,” Ms Dax said.

The big movers were Merino trade lambs, which sold up to $50 dearer while processors paid an average of $205 an average carcass price of 719c/kg carcass weight — 45c/kg more than a week earlier.

The lamb market was also dearer at Bendigo on Monday, showing similar prices gains.

And the positivity is not restricted to prime and store markets, with the first ram sales in Victoria showing confidence is high.

Terrick West at Prairie sold all 80 rams it offered last week with their average up 30 per cent on last year.

Terrick West principal Ross McGauchie said commercial producers “had $3000-$5000 in their pockets” to spend on rams, in a result that he described as “unbelievable”.

“The wool market and sheep and lamb prices have come back a bit but they are still wonderful rates,” he said.