Rain has northerners looking south to January weaners

Agents in both the south and north have reported increased inquiry coming in already about those quality offerings of young cattle in January.

The cattle market has continued to lift this week across all categories, although restockers are going up faster than finished cattle, a reversal of the trend observed throughout the year, Meat & Livestock Australia global supply analyst Tim Jackson said.

The Eastern Young Cattle Indicator is now close to $2 a kilogram carcase weight above where it was a month ago, sitting today at 558c.

Restocker steers are also more than a dollar above the month-ago level.

Falls of between 50 and 150mm across large swathes of Queensland, NSW, Victoria and even into the Northern Territory have pumped enormous confidence back into the market, agents say.

It has had the effect of driving prices up against a backdrop of continuing increases in supply.

MLA reported yardings lifted by 4,651 last week, mostly driven by Queensland.

"Prices generally lifted by more in the north, though there were lifts across the East Coast," Mr Jackson said.

Elders agent Oliver Mason, Albury Wodonga, said just a few weeks ago there was a bit of nervousness about where all the southern weaners that would be for sale in January were going to go.

There was no concern now.

"The jump in the market, and in interest going forward, has been very strong on the back of rain in the north," he said.

"We've had a terrific spring so there will be plenty of weight and quality in those calves being prepared now for January sales. They will match the shift in confidence well."

Fellow Albury Wodonga agent Michael Unthank, Brian Unthank Rural, said most of the autumn-drop weaners on offer would be closer to the 400kg mark.

He said local restocker demand was also quite strong, in line with most years.

"We've had a good run of bullocks sold lately, so those people will be looking to replace," he said.

James Tierney, Riverina Livestock Agents at Wagga Wagga, said the northern demand was coming from restockers, feedlots and even processors.

ANZ's lastest Commodity Insights report said there was now confidence in the forecast shorter dry period and producers were holding onto lighter stock with a view to being well placed once rebuilding started again.

"When looking at trends following previous El Nino periods, the EYCI has rallied following the end of the destocking phases," the ANZ report said.

"The recent rallying in the EYCI may signal that producers are confident for the neutral outlook post-autumn and are looking forward to the restocking phase."

It said slaughter numbers had been steadily increasing, however this had been due to overtime and Saturday shifts rather than improvement in labour issues.

"Most processors have finalised contracts for the remainder of the year with quoting paused now until the new year," the report said.