The flow of 400kg+ steers through AuctionsPlus has been at all-time highs in the past two months, with 11,891 head offered during September and October – compared to 5,500 head in 2020 and only 1,250 in the depths of the drought in 2019. The combination of the excellent seasonal conditions through many regions has fueled the production base, while the recent record prices has served as the lure to attract numbers into the market.
Adding to the 111% annual growth in 400kg+ steers offered online during September and October has been the rise in prices. For the same two-month period, 400kg+ steers sold on AuctionsPlus averaged 38% higher than the corresponding period in 2020, averaging 555c/kg lwt, or $2,450/head.
With the surge in September and October, total numbers through AuctionsPlus for the first ten months of 2021 sits at 30,730 head – already exceeding the full calendar year 2020 total of 27,112 head. Given that between 2016 and 2020, approximately 30% of the annual AuctionsPlus 400kg+ steer volume was sold in November and December, AuctionsPlus total for 2021 could push over 40,000 head.
The growth in heavy steers being offered through AuctionsPlus in 2021 is in stark contrast to the lower numbers and vendor hesitation experienced by the platform’s early years. However, the combination of user acceptance, ease of use, flexibility of pricing and excellent seasonal conditions in 2020 and 2021 has bolstered the platform supply for heavier steers - acknowledging that the supply of 400kg+ steers sold online is only a small fraction of the national market.
An additional feature of the supply of 400kg+ steers sold through AuctionsPlus in 2021 has been the majority coming out of southern Australia and largely in smaller lot sizes. This contrasts with the traditional supply trend of larger lots on direct consignment to feedlots.