CONFIDENCE is sky high among SA Merino breeders with the volatile wool market trading well above 2014 levels and an almost insatiable demand for lamb and mutton.
Agents and stud principals are hopeful producers will reinvest in the top quality genetics on offer at more than 70 ram sales across the state in the next two months.
Last year many studs hit new heights and many expect a repeat of these sale figures, or even some upside.
The first sales held this week began with a flurry of higher averages on the back of buoyant wool and meat markets.
The only concern is seasonal conditions remain on a knife edge in some areas, which may impact clearance rates.
Elders SA stud stock marketing manager Tom Penna expected similar top prices and averages to 2014, especially in top end sales which had posted $1500 to $2100 averages last year.
But there was room for a lift in some sales where the average was lower.
"It will be the status quo for most sales but if wool and meat prices hold we will see sales go to another level in 2016," he said.
"Across the wool breeds – Merinos, Dohnes and Prime SAMMs – where the studs are well established we will see their sales continue to go well.
"The progressive commercial grower wants to continue to invest in good genetics."
One area of concern was the larger than normal ewe sell-off in many areas earlier this year.
"The top end of the Eyre Peninsula, Mallee and South East are still struggling for feed and we have seen a lot of 5.5 year old ewes and ewe hoggets sold with their lambs teeth, but at least they have made good money," Mr Penna said.
"Where this will be really seen is in the lower numbers in off-shears sales later in the year."
Mr Penna said $1600 to $1800 a bale was good money for wool, and the outlook for meat was "very exciting" due to strong global demand.
"Here we are in dry times and moderate drought in some areas but still selling stock for very good money. In the old days of drought the returns were nearly nothing," he said.
Mr Penna said buyers would be chasing rams with good conformation, carcase shape and wool cutting ability.
"There are a lot of Merino breeders in particular conscious of putting more wool on the sheep," he said.
"We are seeing the bigger, plain bodied rams are breeding ewes that achieve higher lambing percentages, better shape in wether lambs and through long staple length they have the wool as well."
Landmark SA stud stock manager Gordon Wood said there was confidence about the future of agriculture, which would hopefully see buyers bid up at upcoming sales.
"It has been said by many if you are in the position of producing or selling protein you are in a good place for the next 20 to 30 years and there is some real confidence about," he said.
"Wool, lamb and mutton are all profitable."
He acknowledged there was some seasonal uncertainty but was hopeful of volume orders from pastoral areas.
"Most people in sheep are staying in sheep and looking to buy the best they can. Hopefully the pastoral areas about Broken Hill and Port Augusta can get some good rains and start to rebuild their depleted numbers," Mr Penna said.
