Experienced stud stock agents and auctioneers are optimistic the southern spring bull sales will be very strong.
Glasser Total Sales Management principal Michael Glasser said he expected the coming selling season to be firm and consistent on last spring’s.
He said recent rain across much of Victoria, South Australia and parts of NSW had boosted people’s confidence going into spring.
He said while the beef market had experienced a correction, he said prices and market fundamental were still very solid.
The Eastern Young Cattle Indicator (EYCI) has dropped since mid May.
But, according to the latest revisions in the Meat and Livestock Australia (MLA) 2017 Cattle Industry Projections, Australian cattle prices are unlikely to drop back to pre-2013 levels, buoyed by restocker activity expected when pasture conditions improve, along with predictions the Australian dollar will not strengthen and reducing tariff regimes into Japan, Korea and China.
The MLA statements says while the national herd is slowly building, in June 2017 eastern states slaughter consistently tracked higher than year-ago levels and cattle prices dropped below year-ago levels, both for the first time in three years.
Mr Glasser said in the northern sales GTSM had conducted, averages were up in most cases and clearance rates had been fantastic, on the whole.
“I’m confident people from up there will drift south looking for bulls to fulfil their requirements,” he said, adding their influence would be all the greater if spring delivers rain to the parts of NSW that are still very dry.
Elders Stud Stock southern zone manager Ross Milne agreed with the positive outlook for Victorian spring bull sales. He said in areas where the sales would be conducted, female cattle numbers were still reasonable. He said it seemed more heifers had been retained in recent years, so he expects bulls that have the ability to be joined to heifers to be sought after.
Landmark Stud Stock auctioneer Kevin Norris also predicts the bull sales will “hold their impetus” from last spring.
He said while the beef market had eased and herd numbers were still historically low, the outlook for beef producers was very optimistic.
“Demand for beef and red meat generally is very strong,” Mr Norris said.
He said some producer may have, in past years, made do with bulls longer than they would have liked, but now their net returns are better, they could see the value of improving their sire lines to get more returns for better animals.