AUSTRALIA'S epic cattle prices continue to soar with analysts confirming it is inevitable the market will reach the 600 cents per kilogram mark this year.
The Eastern Young Cattle Indicator (EYCI) set another record this week, gaining another 8 cents to 586.25c/kg carcase weight, driven by drought recovery in the northern states and surging export demand.
Mecardo market analyst Augusto Semmelroth said the market would reach 600c/kg as the entrance of restockers and feedlot buyers in northern NSW and Queensland puts unprecedented upward pressure on prices.
"We had a gap in price between the north and south – up to 50c/kg in winter – now that gap is narrowing," Mr Semmelroth said.
"They've had rain so restockers and lot feeders are more confident with grain prices easing too.
"Because supply in the north has finally contracted in the last few months (after years of drought), processors are under pressure to keep up with supply."
EYCI-eligible cattle sold in southern young cattle markets have steadied at 595-605c/kg cwt, while markets north of Dubbo have moved from 540¢ to 580c/kg cwt over the same period.
The market game changer will be in October, following the wet season break which will impact the northern markets.
"Northern operators won't find enough supply in their market so they will start moving south," Mr Semmelroth said.
"The (Victorian) weaner sales in the New Year will be highly impacted by northern buyers coming to the south, in the meantime markets will stablise now.
"It is definitely extraordinary times."
He said Australian beef producers were experiencing the much anticipated returns from opening export markets.
"The domestic market has been bullish for the last two years, depicting this discrepancy between export fundamentals and beef price in the domestic market and we have finally seen this big gap bridged," he said.
"Even if export demand softens we will see robust prices for the cattle market because supply won't be there."
The strength of the prime market is being felt at store cattle markets with grass finishers increasing their pressure on feedlot and processor buyers across the state.
At the recent Colac store sale, commission buyers Duncan Brown and Peter Tuohey drove demand and secured an estimated 70per cent of the heifer portion and lighter steers, bound for the Riverina and southern NSW.
Other major buyers included Don Bowman, Elders and Robert Woodward, Garrison feedlot, Murray Downs, NSW, battled to secure supply against local restockers.
Charles Stewart Dove livestock manager Phil Douglas, Colac, said heifers were up to $200 more this month than the August store sale.
Mr Douglas said heifers were making "phenomenal money" at more than 340c/kg, or $900 per head.
"These buyers obviously see a future in the job because they're not doing it because we are good blokes," he said.
"We are not going silly but if you don't buy, you will be left out of the action – you can't eat the grass yourself.
"Things are looking good for the future."
He said recent rain had boosted confidence in western Victoria with producers opting to hold on to stock.
"People were selling cattle for one reason, they thought this was too good to be true and they need cashflow," Mr Douglas said.
"Up until Monday we were very dry but from (last) Thursday to today there is a difference in people's attitude."