NORTHERN cattle buyers failed to fire any major shots at this year’s southern weaner sales, deterred by heavier cattle weights and a spike in prices.
More than 30,000 cattle were sold at Victoria’s western district and north east weaner sales last week with majority of the yardings absorbed by local restockers and backgrounders following years of heavy destocking.
The average increase of 20 kilogram a head on last year’s weights, as well as an estimated $150 to $180/hd jump in prices, made commercially justifying the long-haul trip to northern NSW and into Queensland difficult.
“Freight on top of the sale average which was up more than $100/hd was a deterrent,” Corcoran Parker Wodonga director Kevin Corcoran said.
“And are they having the season we are? Maybe our locals were just a bit more aggressive.”
While weight and price was a major factor for the northern buyers’ action, Mr Corcoran said southern NSW and most of Victoria had been severally understock but with a reversal of seasonal conditions were now resourced to feed higher numbers.
“The local fatteners certainly took the lion’s share of the livestock,” he said.
“On day one we had 6500 cattle - 25pc would have stayed within our company clients.
“The season in the northern and southern Riverina has filled in beautifully so there are great pasture reserves and subsequently plenty of people that could buy a load of cattle locally.”
The domestic and semi-domestic feedlots were active, with a small portion heading as far north as Gunnedah and Glen Innes, NSW.
Those that did make the trek were return buyers who targeted breeding cattle, according to Mr Corcoran, who said just eight of 50 buyers were from outside the region.
Gibbs & Co director Greg Darmody, Queanbeyan, NSW was a notable buyer at the western weaner sales, acquiring more than 400 head of 310-340kg steers which to target the feedlot and bullock market.
With an influx of slightly heavier calves coming through the grain and grass fattening system at a higher price, Mr Darmody said competitive marketing of the calves as grown steers was now a concern.
“The worry now is how these weights and prices will affect the marketing of grown cattle,” he said.
“The margin of profit we got last year, because of the unforeseen dramatic increase in prices, is unlikely but we can only hope the lack of domestic supply will force a good margin out at the other end.
“Buyers can’t afford a reduction on winter prices of about 600c/kg to make some money out of these, which would still be half the margin we made last year.”
Annabelle Cleeland
Annabelle Cleeland is Fairfax Media’s national sheep and wool writer. Annabelle joined the Fairfax team in 2012 to nurture her love of Australian agriculture. She began as the Victorian western district reporter at Stock & Land before taking on a senior position as a journalist reporting on all industries statewide. Annabelle’s appetite to report on issues which affect the sheep and wool industry has seen her travel to many parts of Australia and abroad. She is excited to spin industry yarns during a period of substantial demand for the sheepmeat and wool industries. Annabelle enjoys horse riding and climbing mountains, and is a lazy supporter of the Geelong Football Club.
Annabelle Cleeland is Fairfax Media’s national sheep and wool writer. Annabelle joined the Fairfax team in 2012 to nurture her love of Australian agriculture. She began as the Victorian western district reporter at Stock & Land before taking on a senior position as a journalist reporting on all industries statewide. Annabelle’s appetite to report on issues which affect the sheep and wool industry has seen her travel to many parts of Australia and abroad. She is excited to spin industry yarns during a period of substantial demand for the sheepmeat and wool industries. Annabelle enjoys horse riding and climbing mountains, and is a lazy supporter of the Geelong Football Club.
