Victorians and lotfeeders to buoy weaner markets

While much of the north of the country having just been through at least their third failed spring, the production areas for the summer sell-off are having better seasons.

With there still being over 1 million cattle on feed and the export market for grainfed beef on the up, lotfeeders will likely be the other main operators, especially for the heavier stock.

Agents from both the western district and north-east are anticipating the strong season in their local areas will mean many of the weaners would not have to go far after purchase.

South-east SA kicked off in the first week of December very strongly thanks to support from Thomas Foods International, lotfeeding operation Princess Royal and local agents, with steer prices hitting $1640 a head or 419 cents a kilogram for 391kg Speckle Parks.

Their lighter brothers made up to an impressive 463c/kg, with plenty of black cattle selling for above the 330c/kg mark.

Euroa also held a sale that week, but buying was reportedly more subdued, with restockers coming only from a tight local area, and a live export order for Russia operating on lighter stock.

Lotfeeders had little impact on the sale at all.

Nutrien NSW livestock manager John Settree said buying support from the north would be "minimal".

"There may be the odd buyer from the tablelands country looking for stock, but definitely not much at all from northern NSW, certainly not until later in the year if the season turns around in the autumn," he said.

"Further north they are in their rainfall period and that just doesn't look like it is going to happen."

Mr Settree said prices at least had remained strong, pushed along primarily because of supply and demand - "they are going to run out".

"The grinding beef cow price is showing improvement in recent weeks and the US grinding beef price is going off its head, plus prime stock is going to be difficult to find so that will stay strong," he said.

"And store stock has been solid as well, there will be some weight in the southern weaner sales and perhaps northern feedlotters will secure those, but they won't want the light ones."

At the opposite end of the scale, South Gippsland's bumper season could mean less buying support from that region as well.

Landmark Leongatha principal Terry Ginnane said backgrounders and finishers had been soaking up a larger number of cattle coming onto the market in the past six to eight weeks.

"A lot of cattle have come forward that would usually be sold in a month or so from those dry areas like East Gippsland, Bombala and Cooma," he said.

"We haven't sold a lot of cattle either, our season is fantastic so people are putting more weight on them and also predicting prices to increase in the new year."

Mr Ginanne said the market had been holding reasonably firm, only fluctuating 10c/kg up or down depending on numbers and the weather.

"Feedlot prices have come-off slightly as the spring progressed, and the heavier cattle that were making big money eased as they have been able to buy them cheaper in the north," he said.

Mercado market analyst Angus Brown said heavier cattle will definitely end up in feedlots, as there will not be any demand out of northern NSW and Queensland that usually underpins these sales.

The remainder will go locally, with East Gippsland, parts of north-east Victoria and the western district having plenty of feed.

"I don't think prices will be record levels but similar to last year, 300-330c/kg, which is still pretty good and there should be plenty of weight in the cattle this year because of the season in the south-west," he said.

"The finished cattle market is looking like it is going to be pretty solid with export demand and the African swine fever impact, so cattle bought in the weaner sales should turn a pretty good profit, if you have feed which is always the thing."