SKY high cattle prices could be here to stay - at least into the new year – as supply of both prime and store cattle fail to keep pace with demand from lot feeders, restockers and processors.
NSW stock agents have suggested if all the ducks lined up - such as northern monsoons, a steady dollar at about US70 cents and low interest rates - by next year cattle prices could be as dear, if not dearer than now.
The Eastern Young Cattle Indicator (EYCI) powered past 590 cents a kilogram (carcase weight) a fortnight ago and set a new record on Thursday last week of 595.5c/kg – slightly higher than the previous record of 595.25c/kg set in September.
Christie and Hood agent Bill Tatt, Dubbo, said one of the reasons prime cattle were so dear waa anything with potential to be grown out into a heavier division was being bought by feedlots.
“All the markets are (also) experiencing a lot of restocker activity on both steers and females, it just depends on what’s available.”
The recent rain had added extra confidence and bought restockers out with a flurry.
McCarron Cullinane director Lindsay Fryer said the thunderstorms have produced an abundance of feed on the tablelands.
"It's like we got a second spring so producers are looking to put stock on because they have already sold their stock and want to keep the feed down to reduce fire hazards," Mr Fryer said.
“The money’s there, but they can’t find the cattle.”
He said restockers were also buying at prime sales.
"They've been there every sale at Carcoar and local meat buyers have plenty of orders to take with them, so there's plenty of competition," he said.
But A.J.F Brien and Sons director Peter O'Connor, Coonamble, was concerned with the 400c/kg (liveweight) weaners had been fetching.
"The meat market hasn't had as much give in it recently as you would have liked to maintain a reasonable margin," Mr O'Connor said.
"Our clients are starting to get pretty careful with the season the way it is."
Australian Lot Feeders Association chief executive Dougal Gordon said cattle in feedlots remain at near records in the September quarter with 961,328 head on feed – up 53,200 on last year.
"Nationally, saleyard feeder steer (330kg to 400kg) prices averaged 312c/kg during the quarter, up 61 per cent year-on-year, while the eastern states domestic paddock feeder steer indicator (280kg to 350kg) averaged 299c/kg, up 52pc,” he said.
He did, however, expect numbers of cattle on feed would reduce for the December quarter due to high prices and tighter cattle supply due to the declining herd and increased backgrounder and restocker demand following November rain.
