Confidence in cattle remains as conditions dry off
Livestock agent Dave Henry comments on the cattle market and the outlook for 2017.
Cattle prices are remaining firm despite increasingly dry conditions across much of the eastern seaboard.
Gunnedah Livestock Agent, Dave Henry, said more rain would be needed to keep buyer confidence intact.
“It’s holding out now because there is still a bit of demand,” he said. “People are still wanting to get in on the job, wanting to keep turning and trading, but in another four weeks if it hasn’t rained, I think it will be a completely different story.”
The best of the cows are making in excess of $2.40/kg, top quality bullocks are making over $3/kg, and feeder steers are making up to $3.60/kg. Feeder heifers are making in excess of $3.35-$4.0/kg depending on quality and restocker cattle are still making well over $4/kg.
With the benchmark price for a steer sitting at around $2.80 - $3/kg, the market is still a long way ahead of low points in 2014 and 2015 where the benchmark for steers was $2/kg.
Dave said the dramatic turnaround in the cattle market has demonstrated the strength the industry can enjoy.
“It’s positive that the market has shown what it can do and it’s put a lot of confidence in the job,” he said.
“There is still strong demand for restocker cattle. Down in Victoria they’ve started their weaner sales and there’s a lot of people buying weaners at $1150 to $1300 each, just to put back in the paddock.
“If you go back two years ago they were paying $900 for the same kind of animals and they were worried about paying that much.”
Dave believes there is great potential for similarly strong prices at NSW weaner sales coming up in late March and early April.
“I reckon if we can get a good January break, which we haven’t had for four years, you don’t know what the weaners could potentially make this year. Last year it didn’t rain so everyone bought on speculation, hopefully this year it rains and people buy with confidence. That’d be the ideal situation.”
For more information contact Dave Henry 0427 421 829.
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