Restockers are the main buyer’s hitting the saleyards to capitalise on the young cattle on offer which have been spurred on by the exceptional season and quality feed.
Early this week the Eastern Young Cattle Indicator (EYCI) was on 642 cents a kilogram (carcase weight) which was down another 1.25c/kg on last week.
Meat and Livestock Australia’s, head of marketing, Ben Thomas, said although the number of cattle on the market remains a lot lower than it was last year, the quality shape of the country in terms of feed and water availability is driving restockers to be very active in the young cattle market.
“Looking at the EYCI, restockers accounted for about 36 per cent of the purchases which compares to only 24 per cent for the same time last year, so you can see they are much more active in the market than what they have been,” he said.
Mr Thomas said that when delving into which buyer types, either processor, feed lot or restocker, it’s the restocker’s who are paying the highest price for young cattle.
“On average restockers are paying 40 cents per kilogram in carcase weight above the feedlot and processor buyers, which indicates just how strong the demand for restocking is on the back of great feed and water availability – the widespread liquidation about three years is definitely seeing the replenishment of herds,” he said.
Stephen Paull, Paull and Scollard, Wondonga, indicated a rise from 2000 head to about 2600 head in the southern yarding.
Mr Paull said although young cattle numbers currently entering the market are on the increase, it is not to the extent of past seasons.
According to Mr Paull, lighter cattle are in high demand for cost effectiveness, saying the less per head price and transport ease are the main contributors, along with excess feed.
“If producers buy the lighter cattle they take longer to finish so it would take them into the winter months before selling them, they may be trying to avoid the spring flush,” Mr Paull said.
Paul Jameson, Elders, Dubbo, said his region is experiencing a strong volume of young cattle, however remaining on trend; numbers are still back slightly due to seasonal conditions of a late winter and early spring.
“Local domestic processors are competing the most because the young female portion coming through are carrying a bit too much condition for feedlot buyers, so the competition for them has been a bit confined to the domestic processing sector and caused the price to drop away a bit,” he said.
Mr Jameson forecasts the Christmas month’s supply and demand stabilising, with producers taking advantage of the two remaining Dubbo prime sales.
Graeme and Dawn Macaulay, “Teviot Dale”, Huon, Victoria, are struggling to comprehend the current bountiful young cattle prices, after their Angus steers sold through the Wodonga saleyards fetched $1415 per head.
The Macaulay’s sold 60 steers and 40 heifers at Wodonga last week, with about 260 Autumn calves set to hit the sale yards this January.
Ms Macaulay said they retain about 40 heifers per year and traditionally sell off young cattle at this time, however last year they began slightly earlier because of the dryer season.
“We sell them straight off the cow and even though they are not weaned, they seem to make a good price,” she said.
“We might however keep the January stock back a bit and sell them weaned if they are a bit smaller but with the prices the way they are, especially yesterday, it didn’t matter whether they were small or bigger we did really well.”
Overwhelmed with the current young cattle market returns, Ms Macaulay said the beef industry is definitely providing rewards to producers after all their previous hard work.
“We are very happy with the price, we are not used to this, it’s always been quite conservative – last year we got $1200 for a few young ones and we were overwhelmed - years ago you didn’t get that much,” she said.
“For about three years we have had good returns - last year was the exceptional year and this year it was even better again.” Ms Macaulay hopes the steady prices remain into the New Year.