CATTLE

Rain spurs 'unprecedented' buying

Restocker demand is sky-high after heavy rainfall.

Alex Paull

This article is 8 years old. Images might not display.

It is a quick turnaround from the general cattle market decline in the final stages of 2016, when the prospect of poor summer rainfall was imminent.

“When considering how long the current premium could last, it’s worth investigating the outcome from similar historical scenarios, and in the past, the restocking and processor segments have eventually realigned,” Meat and Livestock Australia said.

A recent example, such as the period following the extremely wet years of 2011 and 2012, saw seasonal conditions deteriorate and prices paid by restockers for young cattle drop 31% - moving from a premium, to a discount, to those paid by processors. 

From December 2011 to September 2013, the average price paid by processors for EYCI eligible cattle eased 19% to 322¢/kg cwt, while at the same time, restockers dropped from 435¢/kg cwt, to 302¢/kg cwt (down 31%).

As restockers are currently driving the market (like 2011 and 2012), seasonal conditions will again have the greatest bearing on how long they will continue to drive the market, despite the national cattle herd still being at historically low levels. 

The Bureau of Meteorology has forecast below average rainfall for most of Eastern Australia, so producers looking to buy and store cattle should take these recent trends into consideration.

TOPICS:

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Research Report: Large Square Baler Testing (March 2025)

This month Kondinin Group has capacity tested four high-density, large square balers in what is believed to be a first for Australia. Balers from Krone, Kuhn, Massey Ferguson and New Holland were put through their paces, working in windrowed straw.

editions

Research Report: Rural Communications (February 2025)

With the departure of 3G technology and the emergence of 5G and satellite options, there are significant changes on the connectivity horizon. This month Kondinin Group engineers Ben White and Josh Giumelli investigate what is the best way to stay connected in regional and remote areas.

editions

Research Report: Chaser Bins (January 2025)

Chaser bins play a vital role when it comes to on-farm grain logistics. The January Research Report features a comprehensive round up of the latest chaser bins of 30 tonnes-plus capacity.

editions

Research Report: Succession Planning (December 2024)

This month's research report, compiled with the input of John White, Rural Generations, is a great resource for succession planning. A key message from the report is to start succession planning as soon as possible.