IT seems there is mounting evidence that cattle prices are starting to move in the right direction for producers who have had to endure a long period of returns that could best be described as average.
Prime stock sales at Dublin, Mount Compass, Naracoorte and Mount Gambier have benefited from increased competition over the past couple of weeks and prices - especially for export categories - have lifted steadily without getting into the realm of the spectacular.
Now, before I get abused for not taking the obvious factor into account I will admit that, yes, I do know that saleyard numbers are down and processors need numbers and will pay to secure numbers to keep their abattoirs working at capacity.
Despite this there are good reasons to suspect that cattle prices will be at least solid in the run-up to the increasing numbers in spring and summer.
The big winners in the rising prices have been those producers who have been culling their cows - the returns for secondhand cows has been quite startling.
Prices in the South East selling centres of Naracoorte and Mount Gambier have been $1.45 a kilogram to $1.65/kg for good cows. Mount Compass cows averaged $1.44/kg over the entire yarding, and Dublin vendors received a boost when cows lifted 11cents/kg to return vendors $1.40-$1.50/kg for heavyweights.
Bullock prices in the SE continue to shine.
I do not get a chance to see the Naracoorte offerings, but they seem to be on par with Mount Gambier where processors have no compunction in bidding above $2/kg to secure the right article.
Earlier this year the premium price was limited to Angus bullocks but recently the other breeds have sold at parity, with breed becoming less relevant and condition playing the most important part in the buying equation.
The real eye-opener in these markets is the strength of bidding for grown heifers. Weight seems to be the overriding factor, age being only a secondary consideration. Heavyweight heifers which may have had a visit from the bull and failed to conceive, are making $1.60-$1.75/kg.
Vealers are always a hot item during these winter months. Demand in June and July was surprisingly meagre, but the past fortnight has featured a surge driven by butchers and wholesalers.
Mount Compass vealer heifers averaged $2.17/kg last week and steers sold to a rumoured $2.82/kg for one lightweight calf. Dublin yarded a very good selection of grain-supplemented lightweights that were in strong demand, with more than $2.20/kg commonplace.
The store cattle sale at Dublin on Monday that featured an estimated 600 pastoral and locally bred cattle probably cast a few more clues on buyer confidence and where the cattle job could be heading.
It seems like an eternity since northern bred Poll Hereford steers weighing 270-340kg liveweight sold at prices from $1.85-$2.03/kg.
The crowd at Dublin was quite a revelation. Prospective buyers from all areas of the state except the SE attended and the general consensus was that prices were more than satisfactory for vendors.
You may think that it is a fairly long bow to draw to arrive at the conclusion that prices are on the up-and-up, but there are a lot of factors falling into place.
The fact that chilled and frozen beef exports are at record highs is indisputable. After the hiccups of a couple of years ago, the live export of cattle in the north and to a lesser extent through southern ports, is alive and well.
* Full report in Stock Journal, August 21, 2014 issue.
