A HISTORICALLY smaller cattle herd, lower grain prices and plenty of potential for feedlot competition have combined to present weaner cattle producers with one of the best selling seasons in years.
Many sales from the Southern Tablelands right up to the New England and Northern Rivers have recorded weaner steer averages above the $900 a head mark.
Agents have also applauded producers on the quality and condition of the calves on offer this year, particularly in light of the drying season and fading hopes of big rain during April.
At the Central Tablelands Livestock Exchange, Carcoar, weaner sale last Friday the lanes were humming with happy vendors and even happier agents as sale average were $300 higher than last year.
“The market was better than we expected,” said Alf Cocco, “Kareela”, Tarana, who sold the champion pen of Hereford steers for $1020 during the sale.
“Our bigger black baldy steers made $1055 which was very pleasing.”
Most of our clients aren’t carrying what they were prior to the drought so overall, cattle numbers are down.
- Tamworth agent Chris Paterson
Competition at the sale ranged from restockers picking up weaner heifers to replenish depleted cow herds, to backgrounders and lot feeders looking to take advantage of the hungry export markets chasing consistent grain fed beef.
Elders Goulburn manager Steve Ridley said in the south the buyer competition showed little sign of slowing.
"The fact is that there is a shortage of cattle," Mr Ridley said.
"Buyers realise that now, and the next two months, is probably the greatest opportunity to buy the weaners.
"They are not looking at the immediate market, now they are looking at a market in the future.”
He said it depended on individual programs as to what the buyers would do with them.
"If you buy a weaner at 220kg it might be another 12 months before you got him up to feed weight,” he said.
"Most of the cattle weighing more than 300kg will be going onto crops or grain."
Meanwhile, demand for borderlands weaners that have experienced the best conditions in living memory follows hard on the heels of challenging conditions elsewhere in the state, with lot feeders such as Michael MacCue, “Wiliga” Bellata, keen to secure stock for the historically difficult months of June and July.
At George and Furhmann’s 41st annual weaner sale at Casino, steady buyers Bob Jamieson, Inverell, and Michael MacCue, Bellata, were particularly interested in Santa Gertrudis/Hereford which they said were a proven cross that piled on weight in the feedlot.
They both noted the Casino weaners were a little too heavy for profit-eager eyes, but they couldn’t go past the quality.
Some of those heavy weaners, weighing up to 425kg, would go on grass for 60 days then grain for twice as long in the feedlot before hitting a variety of specs - particularly export.
Mr Jamieson said demand from backgrounders came from all directions as grain prices looked increasingly ordinary in the face of the overseas glut in production, indicating that crop producers were turning their back on winter wheat and barley and planned to plant oats this season with an eye on cattle to convert that vegetation to protein dollars.
That was a big risk, considering Inverell had 50mm of rain on January 6 and nothing to write home about since. But backgrounders must have another sense when it comes to rain because Mr Jamieson walked away with 1000 head of “phenomenal cattle” for a variety of customers to be used for backgrounding and lot feeding purposes.
“I’m happy with the quality and the price. I would have taken twice as many if they were there. The quality here is exceptional. The weight’s a bonus. It’s in the breeding and the management.”
Brodie Bud, “Cooaga”, Wandoan, Qld, bought a number of cattle for his own backgrounding purposes for eventual feedlotting.
A lack of store cattle and uncertainty over seasonal conditions was also driving strong prices at Tamworth last week where steers sold to a top of $1200 and weaner heifers topped at $1000.
Chris Paterson Stock and Station Agents principal Chris Paterson, Tamworth, said produces were still trying to increase numbers despite current dry conditions.
“Most of our clients aren’t carrying what they were prior to the drought so overall, cattle numbers are down,” Mr Paterson said.
The threat of increased prices later in the year if rain eventuates has prompted more producers to buy weaners.
“With the talk of a wet winter and things improving, people don’t want to be caught out later on,” Mr Paterson said.
“If we do have that wet winter the prices will increase because of supply – the people who have cattle will try to hold onto them and there won’t be much about.”
Most weaners in the New England and North West are going to backgrounders for feedlots, Mr Paterson said.
Armitage and Buckley agent Victor Moar, Armidale, said the market was very strong at the annual Armitage and Buckley weaner cattle sale last Friday, but that had a lot to do with the quality cattle. As well as a couple of feedlotters, backgrounders were sourcing yard weaned cattle, which Mr Moar said would have been sparked by good feedlot and processing prices.
“There wasn’t a lot of local competition, a lot of the cattle went to other areas having a better season.”
