Rising freight costs and soaring energy prices are expected to influence the demand and prices of cattle in January as thousands of cattle go under the hammer across the state.
Insiders say livestock transport frees have risen 50 per cent compared to year-ago levels, while processors are readjusting their cattle orders on the back of hefty gas and electricity costs.
Buyers believe these factors could affect the buoyancy of cattle prices during the weaner sales, but remain confident there is solid demand for cattle north and south of the Murray River.
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Albury, NSW-based commission buyer Duncan Brown is a regular buyer in Victoria, but said demand among his clients had eased in the last few weeks after the beef market experienced a significant correction.
"The amount of dollars we're playing with is unprecedented compared to 10 years ago," Mr Brown said.
"You're playing with millions of dollars now so if it falls, it can fall a long way as we've seen steers fall by $500 in the last two weeks."
Mr Brown represents backgrounders and breeders across central and northern NSW and said demand for cattle to head north would not be as strong as competition noted during the January 2022 sales.
"Last year people had to have cattle, but this year people will take cattle at a price but they're not as desperate and that's because the market has experienced a correction," he said.
"The feeder prices keep fluctuating so I think don't the markets have stablised just yet and they're things you have to keep an eye on."
Some NSW farmers are desperate for summer rain to bolster grass growth, he said.
"In Moore, NSW, where they had the floods, they're watering their cotton now so that shows that it's not as wet in some places as you think it might be," Mr Brown said.
"I know on the Tablelands they are in need of a rain for more grass growth so you'd be surprised how quickly the ground has dried out."
Farmers seeking to buy cattle are also expected to exercise a degree of caution after freight costs have jumped by 50pc in 12 months after a significant increase in the price of diesel.
"That adds up to a fair bit of money when you start sending cattle 1000 kilometres," Mr Brown said.
"The processors are facing astronomical rises in gas and electricity prices and that's why you've seen the fat cattle."
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Bryce Eishold
Bryce is a senior journalist with Australian Community Media's Stock & Land where he reports on all aspects of agriculture. Bryce is also the president of the Rural Press Club of Victoria. Email Bryce at bryce.eishold@stockandland.com.au.
Bryce is a senior journalist with Australian Community Media's Stock & Land where he reports on all aspects of agriculture. Bryce is also the president of the Rural Press Club of Victoria. Email Bryce at bryce.eishold@stockandland.com.au.
