Cattle market lifts as rain allows sellers to sit back and wait

Recent solid rains have fallen in stock-growing regions where it has made a significant difference, such as southern Queensland where agents are reporting winter oats crops that had not been anticipated are now going in.

In dryer parts of Victoria, such as the western district, rain in the past fortnight is being credited with a decent lift in the market and in particular a bit more buyer interest out of NSW.

The Eastern Young Cattle Indicator has bumped up 19 cents a kilogram carcase weight in the past week to sit today at 612c/kg. Feeder steers have jumped 7c/kg liveweight, restocker yearling steers 19c and heavy steers 7c in the past week.

Queensland has witnessed the largest reduction in yardings, with central and southern regions thoroughly wet.

Dalby agent Wyatt Wrigley, Eastern Rural, said the extreme low numbers had to do with rain affecting access to properties and hiccups in moving cattle. That should ease quickly as conditions dry out.

"But there are also people now opting to grow out weaners and there is the potential to do a bullock job on feeders now," he said.

Mecardo analyst Olivia Agar said it was likely the tightness of supply would continue as producers waited for the market to firm.

Buyers were expected to pay up to fill any gaps in the weeks ahead, she said.

However, that would "push the cattle down the road" and see them hitting the market later in autumn or early winter, she reported.

Victorian agent Josh McDonald, Nutrien at Mortlake, said the effects of the rain in Queensland and NSW were "slowly filtering down", with southern markets dearer than pre-Easter largely on the back of increased northern demand.

Fellow Mortlake agent Bruce Redpath, Elders, said NSW buyers and feedlots were expected in solid numbers at the next monthly beef-bred store sale.

StoneX analyst Ripley Atkinson said reduced supply and confidence following rain had seen improvements across the board in pricing terms.

Lifts in the price of imported lean trimmings to the US were also flowing through to processor cow prices in Australia, he said.

"US buyers are increasingly looking to the export market from Australia to source grinding beef due to the costs of the domestic product," Mr Atkinson said.

"Moving forwards, I see more upward pressure on prices, particularly the cattle going back to the paddock.

"Feeders and finished buyers may need to follow to source supply because I think producers will be happy to sit tight with cattle now that rain has fallen."