Bull prices averaged $12,196/head across all sales interfaced with AuctionsPlus in February, down 6% from the February 2022 average of $12,928/head. This is a strong result for the first full month of bull sales, with over 3,000 bulls sold across five states and 45+ sales for the month.
This result is higher than expected as increasing interest rates, a drier seasonal outlook and lower commercial cattle prices were expected to weigh down demand for new bulls. This initial indication of buyers’ intentions shows confidence in the long-term performance of their beef cattle operations and a commitment to investing in quality genetics to drive productivity gains.
South Australia, Victoria and Western Australia dominated the month’s sales, with over 91% of the bulls offered. Western Australian took out the highest average price at $12,445/head, followed by South Australia at $12,135/head and Victoria at $12,051/head.
Source: AuctionsPlus
There is a well-established relationship between stud bull prices and commercial cattle prices. The correlation between the annual average EYCI and annual average bull sale price on AuctionsPlus between 2016 and 2022 is extremely high at 0.95.
The 6% fall in bull prices is a very positive sign when compared to the 34% decline in the EYCI between February 2022 and 2023. This means that for this relationship to hold over 2023, either bull prices must ease lower or commercial cattle prices must rise. A little bit of both is expected to occur, so the changes in the annual averages are closer together by the end of the year.
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