Lightweight weaners command top bids as restockers fuel price fire

At Grafton this week Angus weaners under 200kg returned $1200 and investors are saying that sort of money is nearly a bargain when you compare it to the high-priced, high risk weaners that sold readily in the southern mountain country last week.

Livestock agent with AJF Coonamble, Peter O'Connor, said the lighter calves, while paying higher cents a kilogram money were "total dollars down" and came with less risk.

"Considering feeder cattle are bringing $1900 to $2000, it doesn't take a lot to go wrong when you're investing $1700 in fat and shiny weaner calves."

With those dollar down calves producers have more time to play with them and can allow for a few things to go wrong while still making 50 per cent on their money, but you need to spend $1300 or better to get a start."

Coonamble district grazier can expect their cattle to put on 0.7 to 1.3kg a day through winter while those on crop can load 2.5kg/day once they are used to the tucker and the crop has matured.

Mr O'Connor also noted that the present softer prices for heavier weaners and milk tooth cattle, paying around $1500, actually presented opportunity for traders interested in quick turnover - before prices might substantially alter.

Whether prices for finished cattle will continue to reward producers in 2022 is a more than a million dollar question.

Dubbo livestock agent Peter Milling said inquiries about young cattle had been on the increase every week since Christmas, when gentle rains rains began to fall.

"They've got plenty of buyer competition right now," he said. "At Thursday's sale they were queued up to try and buy, with prices for young cattle 200-210kg making up 640c/kg.

"But I have trouble understanding why. They are paying an enormous price and they will have to keep it for the rest of the year. Carefully managed most people have standing feed that will last through winter but here in the central west the climate can change in three days. I would be surprised if anyone makes a profit out of it, but there's two things a farmer hates - money in the bank and grass in their paddocks."

Lower Macleay traders Troy and Mirasol Irwin reported they were well pleased with this week's sale of $1100 for Holstein-cross milk tooth calves, marketed on Auctions Plus, as it represented substantial profit earned in the space of five glorious months - until too much rain turned paddocks into bogs.

"I'm happy," Mr Irwin said. "Buying cattle right now still makes sense. If you can't get a start in real estate why not invest in cattle. Buying property is a bigger concern, it's a 25 year investment whereas this is a six to 12 month plan."

"The end game does worry me. At the moment it's like the bloke who imported a container load of tea towels and everyone is selling them on, making a little bit of money out of each transaction but eventually someone is going to be stuck with a lot of tea towels they can't shift."

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