The old game of trying to beat the spring market has been played once again and it has turned out much the same as in other years. Instead of beating it, high demand has brought on the market and suppliers have responded.
For five weeks through July and into August, Feilding has yarded just over 1000-head of cattle. For the four sales from July 12 to August 2, this meant a tally over and above the five-year average for the corresponding sale.
These large numbers have in no way assured buyers that there are plenty of cattle waiting in the wings as everyone is well aware of the shrinking beef herd.
Solid results for these sales and a seemingly insatiable appetite from buyers instigated the large yarding of 1537-head that went under the hammer at Feilding on August 9. Such a tally is not uncommon at these yards, but it has come four weeks earlier than normal.
There was strength through the whole sale and R2 traditional steers averaged $3.87/kg and 445kg. Traditional heifers in the same age bracket had no trouble keeping up and averaged $3.83/kg, granted they were lighter at 360kg on average.
Excitement built when the R1 steers entered the rostrum and the traditional boys averaged a round $1200, $4.71/kg at 255kg. Also hot property were the 217-head of R1 Friesian bulls. They averaged 235kg and $4.99/kg but peaked at $5.24/kg for a pen of 22-head at 254kg.
On Thursday, August 15, advertised numbers for the August 16 sale sat at 1581-head, much to the delight of hopeful buyers.
Te Kuiti held its yearling cattle fair on the same Friday, August 9, and offered 1484-head of R1 cattle. It was strong throughout, but the result of R1 Angus steers got the grapevine working in overdrive. Modern technology meant word of returns reaching $5/kg quickly spread around the country.
King Country NZ Farmers Livestock Agent, Brett Wallbank, said: “A highlight of the sale was a line of 100 14-month Angus-Friesian steers from one vendor. They were well grown at 350-390kg and fetched $1380-$1650 which topped the sale on a per head basis and equated to $4.40/kg for the 355kg pen.”
Charolais steers were also popular and the best of them ranged from 300kg to 330kg and traded from $4.55/kg to $4.85/kg, $1360-$1605.
The heavier portion of Angus steers, 253-292kg, traded from $1230-$1440. This mostly calculated to a range of $4.83-$4.99/kg with a few outliers. The lighter portion, 200-240kg, made $1100-$1225 and for the 200kg pen this meant $5.50/kg.
Putting this into perspective, last year the 250-300kg Angus steers made $1035-$1120 and 200-240kg options realised $855-$1045.
Wallbank attributed the sale’s success to “strong schedules, a genuine shortage of quality cattle and having a significant number yarded in one place”. Those buyers looking for a unit load of black steers were willing to push the boat out a bit more to secure them.
“A lot of cattle went to Taranaki and South Auckland but Hawke’s Bay, Waikato and Northland buyers also got a few,” Wallbank said.
The South Island is certainly not being left out of the early spring rush. After a very quiet winter, Temuka had a 1250-head yarding on August 8, which kicked off the spring store cattle market a good two weeks earlier than normal.
They made a good job of it too as the tally exceeded the five-year average throughput for end of August sales.
Despite the large yarding, there was no shortage of buying power and returns lifted across the board. A line of R2 Angus and Angus-Hereford steers at 398kg reached $3.74/kg and most Angus heifers in the same age bracket realised $3.51-$3.60/kg.
Good numbers of R1 Hereford steers and heifers came forward and the boys, 151-229kg, traded from $4.03/kg to $4.30/kg. The heifers, at similar weights, ranged from $3.86/kg to $4.15/kg. The next sale a fortnight later, on August 22, currently has bookings for 1400-head.
The financial pressure being felt by breeders in the hill country and the encroachment of forestry is having a visible effect on the availability of cattle for finishers. This is creating a squeeze on margins due to competition and it is a good reminder that without the breeders, there is nothing to finish. The same equation is playing out in the sheep industry.
This article was written by AgriHQ analyst Fiona Quarrie. Subscribe to AgriHQ reports here.
