Prime & Store Sheep Reports

Lamb prices boosting confidence and first cross ewe values

RMA Network CEO Chris Howie December 11, 2024

RMA Network CEO Chris Howie.

CONFIDENCE in the lamb job is starting to reappear after the release of early 2025 contracts — around 850c/kg — by processors provided the ability to manage margin.

In turn this has reintroduced demand on store lambs. Phil Butt, Butt Livestock and property, Yass had his annual circuit sale for lambs late November. About 14,000 lambs were offered — all individually weighed into four kilogram weight ranges. The support this year was very good. Many lambs traded in the 330-350c/kg liveweight slot, with repeat buyers recognising year-on-year performance.

First cross ewe rates above expectations

The November first cross sales surprised many with rates well above expectation. Speaking to Richard Harvey, PPHS Naracoorte, about last year’s difficult lamb season we both had the values on 1.5 year-olds in the mid-$200 ranges. Considering the lamb returns we thought this was about right. With a few less numbers yarded; however, and a return of confidence, Naracoorte blew the socks off these expectations with nearly all joinable weight ewes exceeding $300 to a top at $386 and a sale average of $320. First cross ewe lambs batted between $280-$310.

Overall, we are still lacking significant numbers of heavy lambs which has seen price continue to strengthen. Several forward contracts for the New Year have provided confidence in the store market also with rates improving to reflect the margin available when sold. The return to prices moving in a more orderly fashion is good for all concerned. The massive jumps and drops over the past 12 months found many of us struggling to create confidence as agents, producers and processors were second guessing themselves.

Sheep live export decision prompts WA bale review

The Western Australian sheep and wool industry is reviewing wool brokers’ future bale numbers for Fremantle. The damage caused by the live export decision does not have a quick fix nor can it be made better with a cash splash Band-Aid. It just shows how deeply a poor decision can cut into the agricultural fabric when made without understanding. Not much airtime any more from those that made the decision which may just have a sting in the tail come Federal Election time.

Mobile coverage in the country

Open letter to the Federal Government, Telstra and Optus on behalf of the rural communities: From those of us that spend many hours driving to conduct business all over Australia the removal of the 3G network has destroyed our coverage. Even by updating our car boosters, areas we had full connectivity are now black holes. In turn, many of the phone plans are now being changed without consultation to cost more and receive less. Yet again rural Australia is getting the shit end of the stick.

Frame of mind

Last year this diagram was well received. I thought we should revisit this year as we all seem to be in a much better frame of mind. One thing I did suggest was to make sure you sign a contract when selling or buying livestock. This simple piece of paper givers all parties comfort of mind that the deal will be honoured. Considering the value of a load of livestock is there any other commodity or machinery deal you do that a contract is not signed?

Beef cattle

Cattle enquiry for lighter steers and heifers seems to be increasing in the 200-250 kg and 250-300kg spread. At this time there is still some separation between buyer limits and the prices being achieved.

In the north – following more rain, producers have been looking at steers to buy at 360-370c/kg lwt; however, the rates in the south have held at 380-420c/kg at the first of the weaner sales. Heifers have started to improve on the better lines, reaching 340c/kg and a bit, but the main spread seems to be 275-320c/kg. Main reason on the lighter cattle is optimising freight for the trip home, more on the truck.

Pricing for heavier cattle in the feeder range seems to be starting to pull on the bit. Rain has impacted trucking and the grass is now providing a weight gain option in the north.

I attended the last Mortlake sale with 6300 head offered by all agents, including a big run of feeder cattle. Competition between feedlots was good on the 400kg+ models, with rates ranging between 340-365c/kg, with all looking to buy. Quality was absolutely rewarded on the day.

The word is the Northern rates have started to improve, which normally flows south and I expect we shall see $4 in the picture sooner than later for quality lines, driven by supply, extra grass and recent rains.

I spoke to Mick Curtis, Rodwells Euroa, who just completed their first sale with an excellent line-up of 3200 Angus steers as expected. The rain events still had a few areas in the north and local districts a bit too wet to operate, but the sale was a great indication of the coming demand over the traditional Southern weaner sale series. Prices were 200-280kg steers, 350-450c/kg averaging about $1050; 280-330kg, 350-450c/kg averaging $1270 and; 330-400kg, 330-415c/kg averaging $1400.

Euroa will load up again next week with their heifer sale and an expected yarding of 2500 top quality females.

Hayden Lambert, TDC Naracoorte, provided a similar story, with the first weaner sale for the south-east of South Australia series at Naracoorte. Prices were 270-330kg, 400-430c/kg, with the top prices remaining similar to recent sales seen at Mortlake, but the bottom end pricing lifting by 30 cents.

The lighter calves did not have the condition of the heavier calves and were rewarded with 330-370kg, 370-430c/kg and 375-410kg, 380-420c/kg. It was noted calves carrying extra condition (author note: possibly unweaned) received a discount. One feedlot also operated on quality EU calves to background through to feedlot entry weight. Buying support came from northern NSW, Mt Gambier, Tamworth, Gippsland and Wodonga, with corporate pastoral orders and local agents. Several orders were in attendance, but could not activate with their rate not quite enough on the day.

Following on this week Richard Harvie from PPHS will yard another 2000 weaners this Thursday at Naracoorte. The recent rain did reduce the numbers a little, with lucerne paddocks responding well and growers holding a few back.

Ben Jones, O’Connor and Graney, Mt Gambier said Friday will see Mt Gambier agents’ yard 4500 with some outstanding annual runs. Considering the season calves are presenting well and only 20-30kg behind last year with a late flush of feed. Both of these sales provide a great opportunity to manage truck loads considering their proximity to each other.

Leongatha has become a store sale powerhouse with a sale on every Thursday. Jarrod Bennetts, Everett Sealy Bennets, Koo Wee Rup has watched the lines of quality cattle continue to come in and northern orders not previously seen starting to appear. When combined with Ballarat and Mortlake the ability to put loads together seems to be more common now than in the past.

PTIC females — some of the female sales were brought forward and the results made this move well worth the effort. PTIC cows sold from $2100, topping at $2600. PTIC heifers sold from $2000 topping at $2380.

Buying beef weaners

Over the years we have become better at preparing cattle for sale, but it is also very important to manage them after buying. A couple of simple tips:

  1. Get them out of the sale pens as fast as you can into the big yards.
  2. Feed them at the yards before trucking as fast as you can and check the water.
  3. Use a carrier that has the capacity to spell the cattle on the big trips north.

Hoof soreness can be avoided by doing these simple things and feeding them allows them to reactivate once you get them home a week faster into positive weight gain.

Slaughter cattle

Grass-fed cows and bullocks in the south after Christmas may just be hard enough to find in big numbers. The very tight winter in South Australia and Victoria did see a lot of future bullocks sold as feeders and excess cows moved on with calf at foot or straight to works. The offset has definitely been the big increase of cattle in feedlots which I think will become the new normal not just a seasonal flash. If you have grass cattle to sell, get yourself sorted and fill out the grass cattle protocols for the company you are selling to. It is very worthwhile and allows you to access the grass grid pricing.

Dairy heifers and live export

The difficulties within the Chinese dairy industry have seen the live export of dairy heifers erode too nearly nothing. From heady highs of $2600 they are now a difficult item to move other than into the domestic market. It also has a knock-on effect as the sales of sexed semen are impacted with many dairies using old fashion cover bulls at less cost.

The recent delivery of an order to Indonesia is a positive sign. These orders can take a considerable time to negotiate and the combined efforts of live exporters Frontier and SAILS pulling this together hopefully turns in to further shipments.

Last thoughts

Last year we struggled to get any one to buy at very low prices. However, this year some have started to think they can pick the market. Shearing lambs instead of selling or holding cattle back because of the rain to make them heavier. Everyone to their own, but the market seems to be tracking well and my thoughts are when the stock are ready take the coin. If a lamb is worth $180 in the wool, why are we shearing it?

Another year gone and another Adelaide test attended, whilst I tried to singlehandedly keep the Australian beer industry afloat. Weaner sales after Christmas are the main event; however, my son is getting married mid-January so I might miss a few. I wonder where the time went that suddenly our kids grow up.

Over the past 12 months I have caught up with a lot of you that read my articles. Many I didn’t know, but just came up and introduced yourself. I appreciate the comments made and I do not profess to get it right all the time, but I do try to pass on what I hear as unbiased as possible.

Make sure you have a good Christmas. Take the time to speak to someone who just might need a bit of a hand and lastly turn the phone off for a week – it does make you feel better.

Opportunities

 Sheep are worth the money and still present good trading.

 Use the rain to advantage – sell PTIC if you have them.

 Look after weaners when you buy them.

 If you are going to hold stock, do the weight gain sums to ensure you are making extra.

 Livestock finance lets you use the grass when it should be used, not when your overdraft says.

 Keep training; you can’t afford not to.

HAVE YOUR SAY

Your email address will not be published. Required fields are marked *

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

Get Sheep Central's news headlines emailed to you -
FREE!