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ALL signs are pointing to a red hot bull selling season, with agents forecasting averages will increase to hit highs between $3000 and $4000 across the board.
New records, and lifts in averages to that tune, have already been recorded in the first of the northern NSW sales, along with a number of total clearances.
Last Thursday the Peake family of Bowen Poll Herefords and Peakes Angus near Barraba, set a new on-property breed average record of $11,702 – a lift of over $4000 on last year’s result. They also set their own on-property record high price of $70,000.
As the average bull price rises, so does the upset price which has moved from last year’s $3000 to also sit at $4000.
John Settree, Landmark divisional stud stock manager, Dubbo, said the upset price is realistic.
“Old bulls are selling for $2500 to $3000 or more in the local sale yards, so you are potentially one bid away from buying a new bull for $4000,” Mr Settree said.
“Commercial buyers, to be competitive at these bulls sales, in all breeds, now need to be prepared to pay between $6000 and $10,000.”
Mr Settree said there is greater investment into better genetics, which have been missing for several years, across all breeds.
“Studs are investing themselves in more shape, more muscle and performance figures, which both the feedlots and the processors are demanding they do,” he said.
“Clients are reinvesting in their genetics because they can see they need to buy good quality cattle that are going to give them yield, meat quality and get them accepted into feedlots and backgrounders so they are paying it.
“Everyone is getting more money by investing in better genetics.”
Tamworth-based independent stud stock agent Paul Dooley said there was plenty of optimism that the strong cattle market would last for a year or two.
“Add to that the season is starting to fill in,” he said.
“Cockies are confidence people and they have just had a big 12 months of returns and can see that investing now will pay off down the track.”
Mr Dooley said getting used to how much cattle were making now and how much had to be paid for bulls under the current environment would be an adjustment.
“Everyone gets used to the first part easily but the reality they are facing is that to buy bulls of similar quality to last year, they will need another couple of grand,” he said.
“It may take some time for buyers to get their head around this new paradigm of spending more than they used to in relation to getting more for the end product.”
For that reason, agents are predicting that demand will get hotter as the season progresses - when people realise they could be left out.