By Simon McKittrick
The cattle market has started the year on a strong note, with demand across all categories driving competition. Southern weaner sales are also off to a solid start. As numbers continue to increase, we’ll gain a clearer picture of buyer demand.
Angus steer weaners, depending on weight, are fetching prices well into the high $3 range, reaching just over $4/kg, while equivalent heifers are achieving solid mid-$3/kg rates. Demand for slaughter cows remains very robust, with over-the-hook rates ranging between $5.80 and $6.10/kg HSCW. Feeder steers are also performing well, with rates ranging from the high $3/kg mark for crossbreds to over $4/kg for quality Angus steers.
Online sales have opened strongly, with eager competition. Last week’s Weaner & Yearling sale saw us sell an excellent run of vendor-bred Angus weaner steers from Merriwa, which averaged 300kg and achieved an impressive 463c/kg, totalling $1,386 per head.
As we progress through the first weeks of the new year and more cattle come forward, we will get a better sense of market trends. Some forecasters are predicting the potential development of a La Niña weather pattern later this summer and into autumn. Seasonally, most regions are in good shape, apart from some areas in South Australia and Victoria.
However, parts of Longreach have been affected by hot weather and missed storms. An agent I spoke with this morning mentioned the possibility of a larger run of cattle in the coming weeks if conditions don’t improve.
Build up and make money: cattle producers chase more numbers, bigger herds.
More than half the country’s beef herds will either be increased in size or kept the same this year, driven largely by producer expectations of both good seasonal conditions and good cattle prices.
That will take the national herd to 30.15 million head, up from the current 28.51m.
These are the key takeaways from the latest Beef Producer Intentions Survey from Meat & Livestock Australia, which talks in depth to more than 3400 farmers across the country.
Across the board, producer sentiment has lifted but in Queensland, the country’s biggest cattle state by numbers, and in NSW it is highest.
Angus is by far the dominant breed in the south, making up 67pc of the total southern herd size, with Herefords in second place at 8pc.
In the north, the Brahman is still king, making up 46pc of the herd size. However, more producers have Droughtmasters – 48pc compared to 42pc with Brahman. The Brahman still clearly dominates the larger operations.
And while Santa Gertrudis is second in the north in terms of percentage of the herd size, close to the same number of producers have Ultra blacks or Brangus as Santas. Charbrays and Wagyu’s each make up 3pc of the northern herd, yet only 2pc of producers have Wagyu’s while 17pc have Charbrays. Agents said that reflects the degree to which the big corporate pastoralists have taken on Wagyu in Queensland.
MLA reported positive industry sentiment had lifted to 47pc for this survey, compared to 11pc from 12 months earlier and 34pc in April last year. The survey is run three times a year, with this latest data collected between October and December. (Source The Land)
The Eastern Young Cattle Indicator (EYCI) currently sits slightly above 700¢/kg cwt and the Aus dollar is sitting at a low of just over 62c against the US.
Overall, there is a strong sense of positivity, which is exactly what we need as we head into 2025. Here’s to a successful season with solid prices and favourable conditions.
Price Category Snapshot.
- Domestic Feeder Steer @ $3.80/4.10
- Domestic Feeder Heifer @ $3.30/3.50
- Heavy Feeder Steer @ $3.60/3.80
- Angus Heavy Feeder Steer @ $3.90/4.00
- Cow @ $5.80/6.10
- MSA Steers @ $6.30/6.70