Replace or restock as cattle herd grows | Market Murmurs

MLA reported low female slaughter and positive bull sale results point to strengthening of the herd rebuild.

The female slaughter rate tracks the number of female cattle processed compared with the total as a percentage.

MLA use the FSR as an indicator of whether the national herd is operating in a rebuild or liquidation stage.

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MLA senior market information analyst, Ripley Atkinson, said the figures highlight producers rebuilding attitudes.

"We're seeing producers retaining a higher percentage of females on farm which will drive a longer-term positive outlook for the strength of the rebuild with larger calf drops for each season moving forwards," Mr Atkinson said.

"In the June quarter, albeit slightly higher than the lowest figure in a decade in the first quarter, the national FSR sat at 44 per cent.

"During the past 12 months, the FSR has averaged 44pc nationally which supports MLA's current cattle projections for a 5.6pc rise in national numbers in 2022 due to the high retention of females."

Mr Atkinson said Queensland and South Australia were both operating significantly lower than the national average at 35.1pc and 34.7pc, while NSW's FSR in the second quarter was 41.7pc.

"Across large parts of the eastern seaboard, on average the 2022 spring bull sale season, clearance rates and numbers of bulls offered and sold have also been high," he said.

"The correlative relationship between producers purchasing more bulls during this selling season and the lower FSR's demonstrates producers either intend to or have females available to be joined to increase their herd numbers on farm.

"While at a general level, averages across most sales have been higher, demonstrating medium term confidence in the industry for producers to invest in genetics and improve the performance of their herds."

Mr Atkinson said the trends point towards a strengthening of the herd rebuild as female retention on farm rises in line with increased offerings and clearance rates of bulls purchased by producers to join to the retained females.

"The effects of this retention of females and larger numbers of females joined won't be fully appreciated or felt until these calf drops reach processor weights from grass or complete their feedlot programs," he said.

"The results promote confidence for the medium term in both availability of supply and producers outlook."

JUST 122 head were offered during the Dubbo store cattle sale last Friday.

Meat and Livestock Australia reporter David Monk said the wet weather and difficulty moving livestock contributed to the small yarding.

Mr Monk said there were a few pens of good quality weaner steers and heifers along with a fair selection of cows with calves.

"The market was strong from a small field of local and Coonamble and Forbes district buyers," he said.

Weaners were about $150 a head dearer.

Weaner steers sold from $1050 to $1820, while most of the weaner heifers ranged from $1000 to $1450

There were no yearling steers to quote, but the small number of yearling heifers sold from $990 to $1990.

Cows with calves sold from $2800 to $3560.

Mr Monk said the top cows with calves were large-framed Charolais.