If there was a growing sentiment of cautiousness in the cattle market throughout July, someone forgot to tell bull buyers. The Spring bull selling season is off to a record start, with prices for bulls sold on AuctionsPlus in July averaging a record $14,222/head – up 20% on the same period last year. From the 1,931 bulls offered, 1,760 sold during the auctions, achieving a 91% clearance across all breeds, with 21 different seedstock vendors improving their sale averages from last year.
Angus bulls made up 40% of sales, with 704 of 712 bulls selling to a 99% clearance rate and average price of $17,439/head (Figure 1). Brahman bulls experienced the strongest growth in prices year-on-year, with 128 of 146 bulls selling to a clearance of 88%, at an average price of $9,156/head – 76% higher than last year.
Despite commercial cattle prices falling throughout the past month, with the EYCI finishing July below 900c/kg cwt, the demand for bulls remained robust. Underpinned by the continuation of wet seasonal conditions and the growth in the number of females on farm since 2020, producers are clearly choosing to reinvest for further growth and genetic improvement.
Although seasonal conditions through southern Australia have been cold, wet and gloomy, the high soil moisture bodes well for solid pasture growth once some consistent sunshine and warmth show up. Combine that with the BOM’s forecast for high possibility of above median rainfall across most of Eastern Australia from August to October, and producers appear to be confident of having ample feed in coming months.
Soaring demand for bulls, contrasted with falling commercial cattle prices, is a clear sign of a disconnect in the market due to uncertainty and concern surrounding the increased risk of Foot and Mouth Disease. The initial indications of the Spring bull selling season are that bull sale prices will increase again this year – demonstrating underlying long-term confidence in the industry and strength in market fundamentals.
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