Livestock producers and agents are confident about the beef cattle industry despite an uncertain global market. There is also optimism with improved seasonal conditions around many parts of southern Australia since February.
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Cattle prices have remained rock solid, even in these uncertain times, livestock agent Jock Duncombe, of Duncombe and Co, Crookwell said.
"Feeders down to trade cattle and weaners are still going very well. They are the least affected under the current COVID-19 conditions with our market options," Mr Duncombe said.
"The cattle market is fully firm, and cows are still hovering around 280 cents per kilogram to 300c/kg," he said.
Recent prices for heavy trade cattle at the South Eastern Livestock Exchange (SELX), at Yass were strong and likely to be sold for between 360c/kg to 400c/kg, while feedlot cattle remained strong throughout 2020 with prices from 400c/kg to 435c/kg. Weaner and backgrounding cattle ranged from 450c/kg to 550c/kg.
Later this year, the market may be disrupted after a significant seasonal turn around with producers finishing to heavier weights. His forecast is for prices to soften towards Christmas as increased numbers come to the market.
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More heavy export cattle, off the back of a good season of crops, will be offloaded, which will put pressure on the export market, he said.
The improvement in seasonal conditions is an opportunity to rebuild herd numbers but is delayed. The national herd numbers fell in 2018 and 2019, as the drought forced producers to turn-off stock. These tough-decisions, and drought-related expenses, is influencing a slow motivation to restock.
Off the back of the last 18 months, surplus cows are now at limited numbers, Mr Duncombe said. However, local producers are slow to replenish their herd numbers. It will take time to reduce debt and regain confidence, he said.
"It is in the back of people's minds, with feed bills and outgoing expenses, they are apprehensive."
Sheep and lamb
The firm price of cattle is not reflected in the sheep and lamb market, which has taken a hit, Mr Duncombe said.
"Sheep and lamb are getting discounted at the moment. Our export markets are hamstrung due to COVID-19, and the supply or lack of demand."
Usual routine customers, including cruise liners, and the US restaurant trade and Canadian markets, are offline or limited demand, he said.
In the domestic market, sheep producers have an opportunity to restock depleted paddocks for excellent value. There is a high number of young Merino ewes and wethers being trucked from Western Australia to replenish NSW flocks. Even with the significant freight component, it is still great value for producers, Mr Duncombe said.
The strength of the first-cross ewes continued across the state, and prices for ewes ready to be joined ranged from $280 and $350 for heavier weights, he said.
"Through Auctions Plus or a physical market, whether they have been one-year-olds, ewe lambs have been making exceptional money, considering the seasonal conditions which we have experienced."
Lamb producers in the Southern Tablelands, around Crookwell, achieved healthy growth weights off of the improved seasonal conditions.
Some producers are taking the opportunity to sell early.
"Due to the exceptional seasonal conditions we are experiencing through the autumn, winter, and early spring, the lambs have not missed a beat since being born. They are maturing three to four weeks earlier than last year," he said.
With the export market decreasing and uncertainty around the global market there is no point growing them off as export lamb, Mr Duncombe said.
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