Livestock markets hit by FOMO

I have no doubt that is what is happening currently in our livestock markets. Indications are strong that finished livestock and suitable weighted cattle for feedlot entry will be in short supply and competition will intensify so FOMO has come into play in the livestock markets. I know Queensland is a big paddock, but are they there? Last week cattle, along with sheep and lamb markets all improved across the board. The processor pricing cattle grids increased to 15c/kg cwt in a number of heavy categories and southern processors and lotfeeders have been active securing suitable lines out of Queensland that are not readily available in the south.

Moisture in the southern eastern states has sent restocker markets, especially for breeders, higher. Lighter score 2 cows that six weeks ago were making around 140-150c/kg live are now making around 200c/kg live. Heavy cattle are in short supply with intense bidding in most markets. Supply is an issue in the south, hence why they are travelling north for suitable lines which is also common this time of year. There are also some physical markets in the south returning to fortnightly markets and one centre is combining its cattle and sheep/lamb markets on the same day as numbers are falling away after a significant liquidation of livestock from the beginning of the year. If they get decent rainfall this may be permanent and not temporary as indicated.

In Queensland markets the same story unfolds for heavier and feedlot stock. Limited numbers of finished and feedlot types are coming forward, the market is strengthening and the laneways are full of supply chain operators. Western regions have producers restocking and cattle are finding their way into the channel country from the Northern Territory. Weaner steers, for example. A month ago you would have expected 300c/kg liveweight and now they are up around 10 per cent to 330c liveweight

Records for the sheep and lamb product keep coming with Ballarat hitting a state record for lamb last week at $354 a head. The reasons are simple and many. The national flock size dropped some four million head last year and the expectation is this year there will be further decline. Liquidation of the breeding ewes and ewe lambs from the dry summer will lead to a substantial drop in marking rates. Demand for the product domestically and internationally has never been stronger and this looks set to continue. There is a real likelihood that the number of new season lambs will be down on last season's numbers, hence the current price could very well be related to the FOMO.

Goat meat is another red meat currently in demand. The numbers going forward look to be hard to source and supplying our markets will be an issue in the medium to long term. Processors are aware and there is little they can do to address the dwindling supply. Current processor prices on average in the eastern states range from 640c/kg cwt to over 1000c/kg cwt. If that doesn't encourage the hunters and gatherers to find the numbers, nothing will.

Beef producers are not the only ones having to contend with imitation products hitting the market. Where is "Truth in Labelling" that I believed was once legislation. Dairy farmers are fighting the plant-based revolution referring to products as milk. Plant-based products like almond and soy are referred to as 'milk'. Sorry, milk comes from cows. Australian Dairy Farmers' president Terry Richardson said the use of the word milk on products that were not dairy was confusing to consumers. No Terry, it's downright wrong and needs to be address by the ag minister as a priority.

No State of Origin victory this year and to make matters worse I watched the game in NSW at Oberon. The walk home from the pub to the motel was no better. Below zero degrees with the possibility of snow forecast for that evening. Nice town Oberon - in the summer months!