Market talk - Strong demand for cattle

The highlight of the last week was the very strong demand for store cattle at Powranna where agents yarded 2468 head (1,301 more than the previous month).

For this time of the year I thought it was a pretty good number and in general quality and breed were good.

The market improved significantly with heavy yearlings $150 to $180 higher and medium and lighter $300 to $400 better and more in some cases.

Heavy yearling steers (400 + kg) made $1,900 to $2,300, medium (330-400 kg) made $1,480 to $2,060, light (200-300 kg) $1,040 to $1,800 and very small $940 to $1,400/ head.

Heavy steers worked out between 490c and 520c, medium 520c to 550c and small over 700c/kg.

Heavy yearling heifers made $1,720 to $1,840 (av. 410c), medium $1,060 to $1,820 (455c), light $880 to $1,460 (445c) and very small $600 to $1,000 (500c).

There were very few steers under $1,000 and it took a fair way through the heifer sale to get under $1,000.

Most competition came from the North West, North East and Northern Midlands but there were also cattle bought to go interstate with these buyers particularly interested in straight bred Angus steers with some weight.

Although most of us expected a strong sale, I think it would be fair to say that these prices beat most expectations.

There are two store cattle sales at Powranna in September, with the first being on the 4th and the second on the 25th.

These strong store cattle prices follow on from very good sales in Victoria and Southern NSW over recent weeks where it is difficult to buy a steer under 600c and heifers around 500c/kg.

Although not at the levels of that Covid-19 period, it is starting to line up in a similar way with producers being at to sell prime cattle for $2,500 to $3,500 to the abattoirs and so have the money to pay up for their replacements.

The seasons in Victoria, South Australia and Southern NSW will play a big part in how far these prices will rise.

Like the Southern half of Tasmania, much of Victoria and South Australia are experiencing a “green drought” and are in serious need of a good rain.

But the good news is that if those rains come there will be a lot of grass about with not many mouths to eat it.