WA livestock agents had speculated that beef steer prices couldn't go any higher, but recent prices have again proved them wrong.
Prices uare up about $200 on average, compared to last year, after heavy rainfall marked a notable break to the season lifting confidence and demand.
On May 20, Meat and Livestock Australia (MLA) reported a large, top quality yarding at Boyanup achieved higher prices across the board because of strong feeder and grazier demand from all parts of the South West.
Sale yards hit records for yearling beef bred steers and heifers sold liveweight as buyers showed great confidence in the season.
Prices pushed to new heights at the end of May for beef steers to $784-$1596 (285-426 cents/kilogram) at Boyanup.
Landmark South West livestock manager Darren Chatley said the South West had an exceptional break to the season, with an abundance of pasture.
"From a Boyanup perspective, there is a lot of feed around," he said.
"Because of this, there has been increased competition from graziers.
"The slaughter market is good and it all flows on - there is a lot of positivity around and the stores market just follows on from that."
Prices had increased over the past few weeks, but South West agents said they had seen a significant shift over the past 12 months.
Landmark June Special Sale, Boyanup, last year saw prices of $599-$1643 (200-243c/kg) for beef steers, whereas at the same sale this year, prices lifted to $790 -$1721 (270-444c/kg) - setting new records.
Mr Chatley said the yardings were similar at both sales.
"The whole industry is a lot more confident than it was 12 months ago," Mr Chatley said.
"That's the nuts and bolts of it.
"People know when they sell to the abattoirs or live export that they are happy to pay for it."
But Mr Chatley said he didn't expect them to go any higher.
"We have been saying this for the past six months - we didn't think it could get any higher," he said.
"But it has. "I think we are towards the top end of where we are going to be, but I could be wrong."
On June 3, MLA reported beef bred yearling steers under 330kg were 10c dearer, selling from 340-444c to average 390c/kg at Boyanup.
Medium weights 330-400kgs were 5c dearer, selling from 324-372c to average 355c, with the heavier 400kg range 10c dearer selling from 320-352c/kg.
Light weight yearling heifers made 200-354c to average 325c, down 25c/kg.
Medium weights remained firm selling from 252-372c to average 338c, with heavy weights selling from 265-304c, down 30c/kg.
Elders South West sales co-ordinator Michael Carroll said it was hard to put a value on cattle.
"We are about $200 up on average from last year," he said.
"It was hard to value cattle, because the price keeps going up and up.
"This might be where it levels out, but who knows?"
Mr Carroll said Spring would determine whether prices would hold.
"It all depends on the exporters and the processors," he said.
"Come spring time when all these bigger cattle are ready to go, the butchers are able to pay that on.
"Let's hope the primary producers can make some money out of it, because at the moment the prices are the highest it's ever been.
"Let's hope the prices remain high, the industry remains positive and the demand is strong."
Mr Carroll said the outlay for cattle had increased, as steer prices a year ago were about $800-$1000 and had increased to $1000-1200.
"That's a huge increase when you buy 100 steers," Mr Carroll said."
Mr Carroll said it was not just beef steers prices that had increased.
"Friesian poddy calves are making $600, and not so long ago you could get them for $350," Mr Carroll said.
While the prices were good for producers, Northcliffe beef producer John Della Gola said the industry had to be cautious about the spike in the market.
The Della Gola family this year did not put any cattle through their feedlot as the prices were too uncertain.
"Yes it was a reasonable season here in the South West, but if you look at the genuine farmer he can't afford it - it is too high," Mr Della Gola said.
"When they go to sell them, they may or may not make a profit.
"This spike is good for those few producers who need the money and who that lost out few years ago, but for the person buying it is very frightening."
Mr Della Gola said with Brazil and Argentina due to release more beef into the world, the industry should be cautious about expecting $1700 next year.
"These prices are not sustainable," he said.
"We need abattoirs to pay those high prices to be sustainable.
"I would prefer to pay $1000 every year, than $1200 one year and $800 the next - it's a boom and bust situation."
The Della Gola family sold their steers this year, instead of putting them on grain, due to the margins being too tight.
"We have been very cautious," he said.
"We normally feedlot 3500-4000 head and this year we didn't feed one.
"The prices were not good enough; it was better to sell them as stores than grain feed them.
"That's why it was good for those like us.
"But for the blokes buying, which normally would be us, buying 1000-1500 head to put on grain, it's a risky game - so we didn't send any to the abattoir this year."
Mr Della Gola said after coming out of four years of low prices, it was risky to buy high priced stores and then have the market turn and to be left with big debts.
"Only time will tell," he said.
