At the close of last week Australia's Eastern Young Cattle Indicator sat at 528.25/kg carcass weight. That is 31 cents above last years levels, despite little improvement in conditions across large parts of the eastern states.
It's very dry. It is looking that way that if we don't get rain next month we are in trouble
- Geoff Murray, Nar Nar Goon.
Last month just over half of those eligible cattle were sold through NSW saleyards, with just six per cent sold in Victoria. And while most of eastern Australia continues to struggle through what is classified as the worst drought on record in the Murray Darling Basin, recent rainfall in the south has supported restocker intent.
At a state level, the average price for the EYCI in Victoria has been 559/kg, up 30 from the same period last year. Meat & Livestock Australia analysis shows that in July, 43 per cent of eligible cattle purchases have been made by restockers. Queensland contributed 55 per cent, NSW 44 per cent and Victoria, two per cent.
In Victoria those who have sold have been well rewarded.
Last week's Pakenham store sale yarded 1500 head. In what's becoming a common theme as the winter cold continues, that number is down on previous sales, and the condition of a large part of the offering was wanting.
When asked for quick description of the yarding one of the selling agents needed just six words. "Low numbers, poor quality, great prices."
Those great prices were being paid for anything that could be described as heavy, with 10 steers, averaging 511kg sold for 352.2ckg, but also for lighter offerings.
Geoff Murray from Nar Nar Goon, east of Pakenham sold 18 Angus steers, average weight 387kg, for 367c/kg. He was happy with that return, but in a normal season he would have grown his animals out to 500kg before going to market.
Those good rains in Victoria have bypassed his property and Mr Murray is worried that if more rain doesn't come soon he'll have to sell more.
"In the next fortnight [we'll make that call]," he said.
"It's very dry. It is looking that way that if we don't get rain next month we are in trouble. We have around 150 head [at home]. They're still holding up alright, but hay is another problem.
"Normally we would bring them in later, probably before next winter, grow them out to 500kg plus."
While selling now was not part of Geoff Murray's long term plan, the demand from feedlotters and restockers means selling now was worth it, especially with feedlotters prepared to buy light cattle to meet their demands.
"Yeah that's right. You've still got the feedlot buyers," he said.
