The recent run of wet years and significantly understocked paddocks since the start of 2020 has been clearly reflected in the turnoff weight of cattle through AuctionsPlus commercial cattle sales. With little seasonal pressure to sell, ample pasture growth and the consistently rising market (at least until recently), the financial reward for holding longer has been significant for vendors, with buyers forced to compete fiercely for limited quality light lines.
An analysis of steers through AuctionsPlus commercial cattle sale across each weight category reinforces producers have been holding stock longer and selling at heavier weights. Heavy steers (400kg+) contributed just 2% of steer listings in June 2019, compared to 7% in June 2022 (Figure 1). Lighter steer (200-280kg) numbers have declined from 56% to 41% over the same period. Overall average steer weights (at assessment) have increased to 292kg lwt – up from 264kg lwt in June 2019.
Analysis of the same trends from January 2016 to June 2019, with contrasting seasonal conditions, confirm the relationship between seasonal conditions and the proportion of light and heavy steers offered for sale through AuctionsPlus. As pasture growing conditions deteriorated from 2016 into 2017, with the severe drought of 2018 and 2019, producers were under increasing pressure to offload stock earlier and at lighter weights. The proportion of light steers offered on AuctionsPlus increased from 39% in June 2016, to 56% in June 2019 (Figure 2). On the other hand, the proportion of heavy steers offered on AuctionsPlus decreased from 5%, to 2% over the same period. The overall average weight of steers (at assessment) also decreased over that time, hitting 264kg lwt – down from 284kg lwt in June 2016.
The previous MarketPulse article highlighted the increase throughput of the “big boys” in 2021, with a record 43,244 head listed for the year. With about 25,000 head of 400kg+ steers already offered in 2022, annual offerings for feeder steers could lift higher again. During the first half of 2022, 400kg+ steers were selling at a category high 82% clearance rate - averaging $2,444/head, or 547c/kg lwt.