NORTHERN rain has injected a dose of much-needed optimism into the coming weaner calf sales.
Struggling under the burden of low prime cattle prices and toughening seasonal conditions in key buying areas, the prospects for a bumper round of weaner sale fixtures across Victoria were looking glum.
But spectacular rain across parts of NSW in the past week have made the situation more hopeful.
More than 65,000 calves will be sold in Victorian and southeast South Australian weaner calf markets during January. Up to 220mm has fallen in parts of NSW.
Some of the best falls were in areas which traditionally head south to stock up on Victorian weaners at this time of year.
They include Narrabri with 75mm, Dubbo with 141mm, Orange with 104mm, Tamworth with 108mm and Gunnedah with 83mm. Significant falls in other regions may now encourage further buying support in districts such as Gilgandra, which recorded a massive 221mm, West Wyalong which received 101mm and Brewarrina with 153mm.
Prominent Wodonga agency principal Corcoran Parker's Trevor Parker said the rain was a boon, but was unlikely to lift prices in the upcoming weaner sales.
"The short answer is yes, it will have an impact (on the number of buyers coming from these areas). But I don't see rates becoming dearer, rather they will be maintained," he said.
Mr Parker said steer prices would likely remain at rates recorded prior to Christmas, with steers making 170-180c/kg and heifers about 150c/kg.
"The soft prime cattle market and the tight feed situation in NSW and southern Queensland have obviously been making plenty of people anxious about the (calf sales). I'm cautiously optimistic about the next three or four weeks," he said.
But Elders Riverina, northeast Victoria and Gippsland manager Ron Rutledge said it was important to put the rain into perspective.
"It doesn't grow feed overnight and the rains have to be put into the overall picture of farm returns," he said.
"No doubt it might give some people a bit of confidence but is it going to have carloads of NSW buyers coming south to buy weaners? My feeling is no." Mr Rutledge said weaner vendors should condition themselves to receiving rates similar to those seen at pre-Christmas sales and not to bank on a northern buying invasion.
"We had 10,000 weaners sold before Christmas and not one crossed the Murray River (went into NSW)," he said.
"The NSW rains might bring in a few more players but the greater influence will be the fact that anyone who bought weaners last year hasn't made exceptional returns."
- Fiona Myers and Matilda Abey
