Ram Sale Reports

Keep the sheep – pastoral clients help Merino ram sales

RMA Network CEO Chris Howie September 6, 2024

RMA Network CEO Chris Howie.

FINANCE availability, last year’s prices and fodder shortage have all had a direct impact on this year’s Merino ram sales in the south.

Quality Wool as one of the major brokers in the Australian wool industry assists many of their producers with sire selection advice as well as facilitating ram sales.

QW manager David Whittenbury noted ram sales are suffering from reduced demand due to the season in South Australia and an increase in catalogued numbers following the sale results over the past few years. This has seen clearance rates and averages drop across a number of sales. Though not a new occurrence, as we have seen it happen with bull sales over the years, it is still a worrying sign for the Merino industry.

Long-time work mate and retired express fast bowler Tom Penna, stud stock at Elders SA, said this is a year when the studs with large pastoral clients seem to be holding their own with clearances. Pastoral orders can be very hit and miss dependant on season, with most targeting the base level price, but have been a saving grace this year. The larger volume studs have achieved good clearances with averages ranging from $1700-$2200. Studs that are reliant on agricultural clients only have ranged from $1000-$1300.

Early lambs selling well

One of the earlier lamb sale is at Murray Bridge and Nutrien account manager Mark Thurston gave me a quote on the two sales they have run. The first sale was of crossbred lambs straight off mum following a difficult winter, with good trade lambs making $150-$210, store lambs 30–38kg to feedlot ranged from $110-$140 and light restockers $50-$70.

The second sale was the annual Merino woolly wether lamb sale with the lead drafts making $84-$111, second cut $65-$78 and the immature lambs $25-$35. Mark said the recent wind has really cut the country up with heat forecast and crops struggling. Early reports from the West Coast Circuit Sale run by Elders in SA are that Merino lamb prices reflected similar rates to Monday’s sale with extra freight taken into consideration. Overall, I suggest it was a very good result. Nearly all lamb vendors are selling entire drops on first draft, with interstate enquiry being the main buyers across both sales.

At Bendigo, Rupert Fawcett, Ellis Nuttall, said lamb numbers have not yet appeared with indications they are 4–6 weeks away. Crops are good, but feed is short heading west. Heavy lambs topped at $280 estimated at 32kg dressed and some sappy suckers estimated at 23kg made $227. Rupert said quality lambs are selling in the $8.60-$9/kg range, although many lambs are starting to show dryness and dropping into the store category.

The young Merino ewe sales have kicked off and even though some areas are still struggling with the season, rates seem to be good for vendor and buyer. Karoonda in SA is an early sale and Simon Lehmann from Spence Dix quoted best dispersal 1.5 year-olds up to $232, with the majority in the at $120-$160. The 4.5 year-olds were solid at $100-$144, with the 5.5 year-old ewes landing from $120-$130. Most were July/August shorn.

Buy early from stores and dispersal sheep

The common sheep thread I am hearing from all over is farmers are exiting the sheep industry to go full-time cropping. Again last year’s prices, season, fodder costs and financiers not wanting to fund livestock are all significant contributors to this trend. Tip from Chris: Old man Goyder was very smart and if you are outside his line in SA, keep the sheep.

Clint Wardle, newly-appointed Livestock manager for West Coast Rural in WA said the season is ticking along well, although some southern areas of Western Australia did get too wet. Weight in lambs is not there yet as they had a difficult start. Much like SA, it is expected stores will be in plentiful supply in WA.

All conversations point to large numbers of southern and western Merino and first cross lambs in September and October falling into the store category. Combined with the young Merino ewe sale offerings growing into late October through WA, SA, Victoria and New South Wales. My advice for anyone north of Broken Hill, Dubbo and Hay is have your livestock finance sorted tomorrow and secure quality. Buy early to avoid disappointment.

Barlow Peadon Schute Bell’s Dubbo principal Andrew Peadon said the season is exceptional. Feed is really growing now and the quality of the livestock is improving every day. Quality suckers are only a little over 10pc of the yarding at Dubbo and keenly sought. Mutton demand lifted this week with rates of $3.90-$4.30/kg reappearing.

August was a big month

LambEx in Adelaide had a lot of industry-level attendees and trade stalls. Wodonga TAFE’s agency and supply chain training course had its 300th attendee. And there was the Bush Summit in all states with a reduction of red tape being a focus and Penny Wong at the McLaren Vale event being belligerently rude about sheep live export and the reason behind decisions made, just to name a few.

Inspect agistment stock early

For those that have livestock on agistment in the west of NSW and Channel country make sure you inspect your stock now not in three weeks. From experience, the wind and heat cause soft feed to quickly disappear and the weight gain you were expecting goes with it. Speaking with Simon Rowe at Princess Royal feedlot, we both agree it is easy to have ideas of Sydney Kidman grandeur about “the big win” from agisting, but many times the heat shrivel factor can lead to disappointment.

Meat & Livestock Australia’s cattle and sheep projections update have been released. The two things that standout are that lamb exports are at record highs and the tough season may cause a supply of quality lambs to become an issue.

Demand for beef continues and pricing will remain solid, with the southern feeder supply next year potentially impacted by season creating the opportunity to put calves away now.

On recognising those who deserves it

It has astounded me for years how politicians and councillors always get an Order of Australia just for doing their job — perhaps their paid PA writes it for them — while committee members get life memberships, even though heaps of people around the club do more. Once upon a time, before X (Twitter), Facebook and mobile phones, we had the time to identify and reward those in our community because they deserve it, instead of “I’m too busy.” Take the time to drop a line to those that run these different award shows. Without your submissions, we will never know about the efforts of those that deserve recognition.

Celebrating the fabric of a country life

About 24 years ago when I got to Inverell with a young family, 1700km from home, a bloke rang me whom I had never met and said “Chris, I will pick you up tomorrow and we are going to the Casino weaner sale”.

Over the years we have become great mates and through different connections have put some big deals together and perhaps had several small beers with a lemonade dash. One thing that made us mates was how much we invested in our kids. Letting each other know about their success and failures, as well as providing contacts that gave them an opportunity.

Ten years ago he called and let me know one of his lads was playing cricket in Adelaide, so I went and watched. He went to my daughter’s AFLW Grand Final match between Gunnedah and Inverell and I helped his wife make the celery salad at his 50th. As we know, one kid in a family is no more important than the other, but in the country our community thrives on seeing the young ones succeed. The weekend doesn’t get much bigger for any family with three boys – Harry named captain of the Wallabies, Will playing in a back-to-back premiership with Brothers Union club and Sam making 73 with the bat. Cheers to proud parents Mandy and Cameron Wilson.

Investment in the cattle industry

RMA Network had a group of 78 agents and producers tour the new Thomas Foods International beef works and their Southern Cross feedlot at Tintinara recently. The common feedback from all that attended was the scale, attention to detail, calm flow of livestock, forward planning and investment. TFI have created a state of the art supply chain aligned to cattle producers across Australia. In turn the automation seen within the processing plant is set for the expansion of a future lamb/sheep processing chain that fits seamlessly into the existing operation.

TFI staff Ben Davies, Mark Inglis and James Sage all provided an open book opportunity for questions to be asked. Many of the group had not seen what happens after the sale and the outcome has definitely created an awareness and the importance of relationships all the way through the supply chain.

Speaking about having a go

Alex Scott and Staff agency livestock manager Neil Darby let me know his company will hold their first store cattle sale at Yea on 13 September starting at 9.30am, with 1100 booked and more expected. The best steers I have seen in a sale were at Yea, which is renowned for the quality of its cattle. This additional sale will provide local producers the opportunity to capture the market real time with independent agency support. I will be heading along if anyone has an order they wish to operate – credit approved of course.

Sam Bartlett from Adcock Partners Livestock and Property at Quilpie said the last three weeks have been unseasonably hot, with the addition of wind in some areas starting to look for rain and the softer feed pinching up. The channel country turn off is on with many bullocks and cows being sold and booking time to slaughter are ranging from 7-10 days. Further west towards Birdsville and Bedourie it is looking good, with some still in buy mode.

Steve Gaff at Red Centre Rural in Alice Springs has been sending cattle to export over the past four months, with the Vietnam orders on best heavies around $2.80/kg and lighter steers and bulls at $2.70/kg. High grade cattle for Indo seem to have stabilised at $3/kg, although there is a bit of price resistance.

Heavy slaughter cattle are going to the processor with excellent demand however store cattle enquiries have slowed up.

Following on at Alice Springs, David Eggleton Livestock and Property yarded 3040 cattle from the Lucy Creek, Palmer Valley and Huckitta Stations at the Bohning yards. Competition from Teys, Hardwicks, Ralphs, Morgan Feedlot, Platinum Ag and local buyers led to a full clearance. Reports were the cattle presented in good order. The 2400 steers ranged from $3.35-$3.84/kg for the better types and $2.70-$2.90/kg on the manufacturing models. In the sale of 600 cows, light cows made $2/kg and the better slaughter cows topped at $3.04/kg.

Andrew Peadon at Barlow Peadon Schute Bell in Dubbo said many feeders are blowing top end weights in central NSW with the strength of the feed. Grazing crops and clover are outstanding and the cattle are really doing well, which is catching some out when estimating how many they have to sell for feedlot specs. Considering the time of the year and strength of feed, weighing early is maybe a good idea.

Jarrod Bennetts from Everett Seeley Bennetts advised the closure of Pakenham saleyards has created the need for Leongatha sale yards to have a store sale every Thursday of the month. The condensing of numbers into less yards makes this a smart decision and allows northern orders to operate consistently on good quality cattle.

Charters Towers agency Williams Livestock and Rural principal Troy Williams quoted this week’s sale with 3600 head as relatively firm with a full field of buyers. Best bullocks $3.30/kg, best cows $2.90/kg, heavier store steers at $2.90/kg with heifers $2.70/kg. However, lighter store steers and heifers struggled with a lack of buyer confidence.

Roma’s MAA livestock and properties Duncan McLeod added it is difficult to pick the cattle prices at present. Some of the larger processors have numbers coming from the west and did not buy; however, the southern contingent of processors are very strong securing significant numbers at Roma this week.

Opportunities

 Sell them when they are ready, don’t fatten them twice.

 Stack light Merino lambs away for a 9-month trade plus wool

 Light steers and heifers are still worth a shot.

 Southern cow and calf units to freshen and split.

 Not getting dragged into full time cropping – keep the sheep & cattle

 Finals time – support the kids and tell stories at the bar.

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Comments

  1. Adrian Gallagher, September 6, 2024

    Great article. Sidney Kidman

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