Cattle throughput busts records

Sellers have shifted focus from direct supply to abattoirs, unlike the drought-forced offloading last year, which led to larger yardings in the traditionally quieter June to September period.

Agents and analysts said this year more cattle were sold at open auction.

Processors had been slow to react to potential supply threats with increased grid rates and producers who invest heavily in consistently meeting market specifications have been forced to tap into saleyard offerings, they said.

On average, throughput in NSW saleyards for the past 15 years was 80,000 head between June and mid-September, according to National Livestock Reporting Service.

Throughput has only exceeded 100,000 head three times - in June 2014 when it reached 104,000, in July this year at 102,000, and during the drought of 2002.

NLRS operations manager Damon Holmes said big yardings in 2014 were a direct result of continual dry conditions across much of the state's cattle-producing country, but the dynamics driving the same trend this year were different.

"The EYCI (Eastern Young Cattle Indicator) is at record levels," he said.

"Producers who have traditionally sold over-the-hooks are watching the gradual increases in saleyard prices, seeing the extra competition with more buyers about and thinking they will take the option to try to secure better prices."

Most producers have only sent up to 50 per cent of their stock to saleyards, agents estimated.

But because the trend is impacting broadly across the state, throughput has increased significantly, particularly at larger selling centres.

At Wagga Wagga, throughput for June averaged 4670, but in June last year it was 3700 and in 2013, just 2900.

James Tierney, Riverina Livestock Agents, Wagga Wagga, said while some direct suppliers had attempted to hedge their bets with processing prices lagging, Wagga had also grown and was now drawing from a much wider area.

"On top of that, we have had two to three good seasons in a row and there has been cattle put away which now have the kilograms on them," he said.

"Last year in particular, those that had the feed, bought up and they are now bringing them out to cash in."

At Casino, July saw an average 1800 head yarded, in 2014 it was 1420 and in 2013 just 1240.

In the nearby North Coast centre of Grafton, agents estimate yardings were up 25pc on what would be considered typical for the winter months.

It was unexpected as it was considered most operations were heavily depleted, said David Farrell, Farrell and McCrohon.

"Farmers were digging deeper into their paddocks to find cattle to sell," he said.

Mr Holmes said ready-for-market cattle had contributed to larger throughput across the state, driven by producers that held on to stock last year.

"Even those who might otherwise grow them further are opting to take the good prices while they are available," he said.

Saleyard price lifts were quality-dependent, Mr Holmes said.

"Restockers are looking at weather forecasts and have been reserved on lighter weight lines," he said.

Heavier cattle coming off good winter crops, mostly in northern and central regions, have also been sold earlier than usual and Mr Holmes said the market could experience a shortage of heavier cattle in the six to 12 months.

"Most (analysts) do agree there will be supply issues of all types of cattle in the next 12 to 18 months," he said.

QLD Brahmans trek to Forbes

NEW vendors and breeds were a feature at Forbes saleyards this winter, as big yardings were a common occurrence.

Forbes Livestock and Agency agent Anthony McIntyre said yardings between 1000 to 1200 head are typical from June to mid-September, but this winter most weeks Forbes took about 2000 head, and sometimes more.

"The way prices have been, people are offloading cattle not entirely finished but we are also getting supply from a lot further afield," he said.

"Producers have been watching the good prices here and thinking the extra kilometres are worth it."

Mr McIntyre is pictured with fellow agent Samuel Hart and a pen of Brahman steers and heifers from South West Queensland, which averaged 270 cents per kilogram to a local finisher at Monday's sale.

He said in the past three years he had only seen a pen of Brahmans that size at Forbes twice.