New year sales breathe life into market

The highly anticipated Victorian weaner sales have kicked off, with confidence-boosting rain lifting demand and firming prices, dragging the industry out of the doldrums of 2023 and setting the tone for a positive year ahead.

At the Wangaratta Blacks Market on Tuesday, which was interfaced with AuctionsPlus, the top pen of 23 Angus steers, weighing an average of 430kg/head, fetched $1375/head.

Steers averaged 332.78c/kg or $1122.65/head, while heifers averaged 258.90c/kg or $806.90/head.

Similar prices were recorded at special weaner markets at NVLX Wodonga on Tuesday and Wednesday with northern and local interest driving the markets.

Nutrien Ag Solutions South East Region Livestock Lead Adam Mountjoy said the first two days of Victorian weaner sales had shown some encouraging signs after last year’s steep decline in cattle prices.

“Markets have opened up significantly dearer than we ended in 2023,” he said.

“Lighter weight calves have been actively sought after and are making up to $3.80/kg,” he said.

Mr Mountjoy believed the interest in lighter weight calves was due to good seasonal conditions, which gave farmers confidence to grow them out, as well as a strategy to reduce freight costs.

He said the weaners were presenting with terrific weight for age and identified that weaned lots were receiving a 10% premium.

“I think we take January as a start and if these markets can open up now with increased demand see where we go,” he said.

“Weaner calves are only making 5-10-% more than feeder rates, which is pretty good trading. We’ve certainly seen disparity higher.

“We’re also blessed in the south with additional processing capacity from midyear onwards.

“It’s looking positive in the first quarter. I don’t want to get too bullish, but it looks like there’s a lot to be positive about.”

Elders National Livestock Manager Peter Homann agreed saying: “2024 will be a hell of a lot better than 2023”.

Mr Homann said the market was on a firming trend supported by an uptick in export sales, an upward pressure on over the hooks and paddock sales and well as an increase in processing capacity.

He saw confidence in the livestock industry on full display at the opening weaner sales in Victoria this week.

“Confidence has completely changed - people now see opportunity in the cattle market,” he said.

“We’ve gone from dire straits of Australia turning into a dry sandy desert to opportunities in livestock trading.”

Mr Mountjoy squarely blamed a saturation of El Nino doomsday forecasting in the media for last year’s livestock market crash.

“We ran out of buyers. I’ve never seen that in my working career. Fear ruined the whole job,” he said.

Recent rain events have changed the narrative and buoyed producer confidence, he said.

“I think the market will just continue to firm up, not jump out of the box because export prices and over the hooks prices are still gaining some traction and they will need to lift.”