Surge in Cattle Prices as Markets Adapt to Demand Shifts

Recent reports indicate that saleyard prices for cattle are thriving amidst a noted influx at the start of the financial year. In a bustling market, over 8,000 head were sold at Roma yesterday, while Dalby agents processed an additional 7,000 head today.

Heavy cattle have emerged as a focal point of interest among buyers, particularly with southern processors actively seeking these animals for transport back south. The presence of at least three southern processor buyers could be felt at the Dalby cattle sale, driving up demand.

The sale event at Roma witnessed significant competition, pushing prices for heavy cows up by 10-15 cents per kilogram, averaging around 320 cents per kilogram.

A notable factor influencing this increased demand is the ongoing southern drought, which has exaggerated the yearly migration of heavy cattle from northern regions to southern pasturelands. The drought’s impact has even extended to the feeder market, with many cattle being transported from Queensland to feedlots in Southern New South Wales.

Strong Demand for Heavy Cattle

A prominent highlight of today’s Dalby sale included a pen of Droughtmaster bullocks, which sold for an impressive 404 cents per kilogram, equating to approximately $2,400 per head. Selling agent David Felsch from Ray White Dalby noted that the competitive bidding among both local and southern processors has driven prices upwards.

“It was exciting to see the competition, especially from southern processors amid the dry conditions they are facing,” he explained. “Hopefully, they will remain active in the market through winter and receive a favorable break of rain.”

According to Mr. Felsch, southern buyers have been a consistent presence in the Dalby market over the past four to six weeks, bolstering price stability. “Our genuine Queensland buyers—those larger processors—aren’t competing with them, which helps maintain a healthy market dynamic,” he noted.

He added that cow prices have significantly improved, with top-quality cows previously fetching around 280 cents per kilogram now reaching up to 340 cents per kilogram. “With the financial year having just transitioned, many sellers are eager to move cull cows while the market is strong,” he concluded.

Eastern Young Cattle Indicator Approaches Peak

Young cattle have also experienced robust trading in the last fortnight, with the Meat & Livestock Australia’s Eastern Young Cattle Indicator (EYCI) rising approximately 40 cents during this period. The EYCI opened this week at 728 cents per kilogram of carcase weight; however, it dipped slightly to 722 cents after the Roma sale.

Preliminary numbers from the Dalby cattle sale suggest a rebound to 731 cents per kilogram, just three cents shy of this year’s peak of 734 cents.