Magical 2019 Merino sales defy dry year

In the past couple of months, more than 70 on-property sales have been held across the state with most close to 2018 sale averages of $2000 to $2700 and some even lifted $300 to $400 - despite only limited pastoral bidding.

Even the erratic wool market, which went into free-fall in August, only to recover some of this ground in September, did not dampen the bidding.

It has left many breeders pondering how much hotter the market may have been if the season had lined up.

The Smith family's Glenville stud, Cowell, topped the on-property sale averages with a total clearance of 170 rams for a magical $3122 average, while George and Sophie Millington, Collinsville, Hallett, posted the highest on-property price with a $31,000 ram selling to WA.

But, the season high came at the Adelaide Ram Sale earlier this month with the highest price seen in 30 years when Glenlea Park stud, Pinnaroo, received $100,000.

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Also in Adelaide, Collinsville stud sold two top sires at $72,500 and $62,000.

Landmark stud stock manager Gordon Wood says the season has been "the most surprising" in his time in stud stock.

"Most years we have a good idea if it will be strong or tight but this year was a bit of an unknown," he said.

"There was certainly some trepidation heading into the season about where clearances would be."

"We knew the front end would be strong because among the inside country buyers there is a lot of confidence in the mutton and lamb industry and the wool industry, but the big question was the clearance, especially some of the larger sales."

He noticed a "change in dynamics" in buyers, with some clients who had previously bought in the paddock operating at auctions, replacing some of the station orders.

The last portion of some sales was the most challenging, with many buyers not being forced, on budget, into their second or third choices.

Mr Wood is optimistic Merino sales will remain at similar levels in 2020.

"It is a big, wide country and we know that we get cycles that are wet and cycles that are dry - when it does rain the Merino ewe is going to be what everyone is looking to buy," he said.

"Whether you have crossbreds or are breeding second-cross lambs from first-cross ewes, for the most part, you need a Merino ewe to start with."

Elders stud stock manager Tony Wetherall agreed the season was better than he anticipated.

"I thought we might see a few more sales not achieve 100 per cent clearances and wondered whether there would be enough orders to underpin sales, especially some in the Mallee and Mid North, but we have got out of it well," he said.

Rain or the lack of it was an "underlying factor" in sales which depended on clients in more marginal areas, but many sales defied this on the confidence in mutton, lamb and wool prices.

"Commercial growers could see by paying that extra $200 to $300 (for a ram) they would get it back," he said.

Mr Wetherall says breeders were looking to buy heavy-cutting rams that would increase their wool quality, but also have carcase traits and good structure.

"In the past we have talked about wool types for specific areas but what we are seeing is the right type of wool will go anywhere and if the carcase is underneath it you have got a great package," he said.

Mr Wetherall says rebuilding the state's Merino flock will take several good seasons.

"We really just need a decent season everywhere so everyone can have a crack at these better wool and sheep returns," he said.