NSW hungry for WA store stock

The trend is now causing local producers to reconsider purchasing stock from the west as transport costs become a deterrent to those hoping to source sheep and cattle.

Store weaners hit 261 cents a kilogram at Boyanup, WA, on December 8, and industry sources said strong WA prices looked set to continue well into the new year.

Large drafts of cattle have left WA in the past three months, headed across the border to South Australia, Victoria and NSW where the demand for cattle has been exceeding supply.

And with rain continuing to fall across NSW and Victoria, excess feed and failed crops could prompt producers to look at ways of recouping costs by turning livestock on to them.

The question was, where would those stock come from?

In a stark contrast to store cattle sales in November, where eastern States buyers dominated much of the bidding, the last two Boyanup, WA, sales had seen a noticeable drop-off of eastern buying support.

But their earlier competition, added to live export and local feedlot and grazier competition, had seen WA prices reach eastern States levels, making it almost unviable for trucking the stock east.

At a sale in Wodonga on December 9, 250kg calves made $600 or 240c/kg, while heavier (370-380kg) calves sold for $760 to $770 a head.

Prices at Boyanup for lighter cattle had consistently been sitting about the 220c/kg to 240c/kg mark.

Albury livestock agent, Michael Unthank, Brian Unthank Rodwell, said while there was still strong demand for cattle in Victoria and NSW, prices in WA would probably prevent eastern States graziers heading west to buy weaners.

“WA has caught up with us price-wise now, and the gap is pretty much closed,” Mr Unthank said.

“Demand is still strong, but I am not sure where the cattle are going to come from.

“We had a sale (on December 9) where 2000 cattle were yarded and such was the demand, we probably could have sold 10 times that many.

“I don’t think cattle prices will go much higher than where they are now, though – the peak has been reached over here.”

At the annual Christmas calf sale at Naracoorte, SA (also December 9), tri-State demand drove weaner steer prices to $930/head.

Grossing a total of $3.16 million for the 4275-head steer sale, prices averaged $730/head or 230c/kg, with sales below $680/head as rare as hen’s teeth.

Inverell’s Sundown Pastoral Company claimed 500 steers, and Sundown livestock market co-ordinator, Rob Walker, said the average price of 230c/kg would be indicative of things to come when the Victorian weaner sales started next month.

Other volume buyers at Naracoorte included Swift Australia, which took 240 European Union (EU) steers for its Riverina feedlot, and T and R Pastoral, which picked up 400 steers from EU-accredited suppliers.

Mark Haywood, Landmark stud stock, Tamworth, said the demand for cattle in the local saleyards was unprecedented.

“We haven’t seen it like this for 20 years – people have more feed than they know what to do with.”

He said people who usually sold their yearlings in the store sales now were holding on to them to feed.

“There’s not going to be a big flush of numbers in the markets, but people will still trade their old cull cows – the export market is good right now – and there will still be those who decide to sell young cattle now, while the market is good, rather than in three months.”

He also said some heifers were currently making as much as steers, and he had chased heifers to 262c/kg for a client on AuctionsPlus, before pulling up.

“The best cows and calves are making $1000 to $1300, and old cows are making $800 to $900.”

Elders Goulburn branch manager, Steve Ridley, said the demand for both sheep and cattle from the west would be on the slowdown now, but there would be some demand for stock to go onto stubble or wasted crops.

He said most of the cattle to come across from WA had come from the northern pastoral zones while the sheep were coming out of the southern areas which had been in drought.

With the recent rain, some producers may be less likely to want to sell stock.

“The sheep are steadying up – I had one client get some sheep over last week, but that had been on the go for about three weeks,” Mr Ridley said.

He said about 900,000 ewes had come out of WA, mainly Merinos.

“I think come January, the top crossbred ewes will make to $200/head.

“I don’t know if the store lamb market can get any stronger, with store lambs bringing $90 to $100.”

Mr Ridley said the processors were experiencing good demand, with a highlight being the skin market.

Skins were making as much as $23, and there weren’t enough to fill orders.

“We’ve never seen skins as dear or as in demand as now – the best we’ve seen is $20 and now they’re making up to $23.”