A collective sigh of relief replaced anxious expectation as the first week of weaner sales in Western Victoria finished on Friday.
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With some 10,000 head sold in the week’s four sales – the majority being Angus steers – an average of 385c/kg or $1380 a head has rekindled closing 2016 market rates.
Without doubt this has delivered a renewed wave of confidence that current slaughter rates “may” endure at least until the back end of winter.
The primary motivation for this confidence has been the participation of the nation’s two largest beef processors – JBS Swift, which had gathered some 2000 steers for placement in Tasmania to Friday, and Thomas Foods with about 700 EU-cattle to benchmark demand.
Unlike a similar move JBS undertook some years ago, its order has ruffled few feathers – particularly of its own Alliance suppliers who have competed in opposition.
Central to the exporter’s primary objective is its desire to fill a perceived void in its Tasmanian winter supply that produces a range of highly regarded branded products from its Longford factory.
Kerr & Co auctioneer Craig Pertzel, speaking after the Hamilton Angus sale on Monday last week, said not only had its activity underpinned demand – but it had also underpinned the thinking of others.
“There is an obvious sense of belief that if (JBS Swift) can buy at this money so can others,” Mr Pertzel said.
However, the extra weight this year’s calves have offered – Hamilton yardings have averaged 355kg – has helped retain most of the cattle sold to the southern states, with few (10pc) drifting north.
One of the main discussion points in the many evening chit-chat sessions following the Hamilton sales was been the length of time the market has to run at current rates.
Thoughts have varied broadly, from a few months to several years.
But the common theme has always returned to focus on the availability of supply (depleted) rather than the related effects of global demand and depressed world-market pricing.
Another discussion point after sales has been the success or otherwise of AuctionsPlus and its participation in this year’s southern weaner series.