AS RAIN continues to tumble throughout much of the eastern states, the interest in cattle is growing.
This, coupled with the fact the unjoined heifer market has become more closely aligned to steer prices, is anecdotal evidence that breeders, graziers and finishers, all flush with feed, see their next investment opportunity in cattle.
Many are showing this preference over sheep, as the margins for small stock are either too tight, too uncertain or too expensive for the numbers needed to restock.
Russell Mawson of Landmark Euroa said, Friday, no-one has taken any notice of ABARE.
“Feed in the north and a lack of numbers is driving the cattle market – nothing else” he said.
It is a great point to ponder given that areas such as Hay, Hillston, Tullibigeal, Coleambally and Barham have all joined the hunt for store stock and their preference seems to be cattle.
And with western areas all flush with feed Kevin Corcoran of Corcoran Parker Wodonga commented that it’s a long time – perhaps 20 years – since both the north and the back country have all wanted cattle at the same time.
“This must be good for the cattle market over the longer term” he said.
Former Elders Jerilderie branch manager Trevor Bassett now in charge at Euroa said given the moisture in the back country many people are re-thinking their buying alternatives.
Steers and females for breeding he said were both being considered and, although money is scarce, prices are getting to a level where returns are somewhat sustainable for the producer.
This point is not missed by Wodonga’s Trevor Parker, Corcoran Parker, who said cattle breeders have taken a flogging in recent years (with low prices) and it is their turn to reap some of the rewards of the latest improvement in the market.
Dan Ivone of Paull & Scollard Myrtleford says it has been a long time since the heifer market has been so closed aligned to steer values.
His annual autumn sale held Friday at Myrtleford returned a steer average of $655/head for the 912 head penned and $550 for 373 heifers.
Michael Curtis of Newmarket Livestock, Euroa said the difference between steer and heifer prices was usually $100 to $150 but on today’s market the margin has become a lot tighter, closer to $50-$80 when similar cattle are compared.
All anecdotal and opinionative suggestions, but if these are the views of agents in the thick of the market it might be some time before processors gain the relief they are so desperately seeking.
According to NLRS saleyard figures throughput at Queensland markets last week tumbled 66 per cent on the week previous reinforcing the weather driven market.
Saleyards such as Roma in central Queensland have been forced to cancel sales again this week – the fourth time this year - due to the big wet up north and load restrictions now being placed on the roadway system.
Other Qld markets like Dalby and Moreton last week also saw heavily reduced yardings due to the rain and local flooding, supplies falling 90pc and 37pc respectfully the NLRS said.
NSW saleyards have also seen supplies dry up with offerings at Casino, Gunnedah, Inverell and Wagga Wagga all significantly reduced last week due to rain and improved seasonal conditions following the extended period of drought now playing their part.
However suggestions are already being made that once a lot of this country dries out the recent spike in prices is likely to entice large numbers back onto the market with the interest then to focus on where the market will settle with producers across a broad area of the eastern states now well armed with feed and water to should last at least a couple of summers.
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