Cattle prices on fire

At this week's Roma sale, agents yarded 8000 head of store cattle on the back of last week's 3000 head consignment.

Landmark's Roma branch manager Paul Holm said the market stayed strong on the back of last week, the first sale for 2015.

To put the market increase into some perspective, Mr Holm said he had described weaner cattle selling for 250c/kg at Roma's final 2014 sale as a "pretty special result".

Cattle fitting the description sold for a top price of 298.2c/kg on Tuesday.

"These steers making the top money were pretty well conditioned, and very well weaned and handled," Mr Holm said. "However, there are a number of other factors driving the market upwards of 60c/kg to 100c/kg depending on their description.

"This week's market could also be based on the widespread rainfall forecast for later in the week in the Maranoa district."

Mr Holm said beef producers were doing all they could this time last year to look after their country by selling cattle in large numbers due to drought. Now it was time to look after their bank balance, he said. "The big yardings are due to two factors: One being much needed cash flow, and the much increased return.

"Last year a producer may have got a return of $40,000 for their consignment, and this year for the same line it could be $65,000 due to the historically higher prices."

Gracemere agent Brian Dawson, Brian Dawson Auctions, described last Friday's prime and store sale as the dearest yet.

"I have not seen the cattle market jump anything like it, and I have been operating here for the past 15 years," he said. "We had prime bullocks make 243c/kg and prime cows and heifers top at 220c/kg.

"Last year we had heavy feeder steers in the 400kg weight range making $650, and last week similar lines returned $1000, topping at 250c/kg."

Mr Dawson said the Gracemere market had jumped by 40c/kg to 70c/kg across the board on last year's market.

In Dalby yesterday some 6100 head were yarded, representing an increase of 2700 head on last week's yarding.

Peter Daniel, of Grant Daniel Long, said the market was firm on last week, and suggested it was up $200/head across most categories since Christmas. "There certainly were some extremely good quality cattle on offer, as cattle responding to rain and fresh grass," Mr Daniel said.

"There was good money for Japanese bullocks making to 245c/kg, and 100-day feeder steers selling between 265c to 275c/kg.

"The rising prices are a welcome boost to the industry, as everyone has kids going back to school, and they need money."

MLA manager for market information and NLRS Ben Thomas said rain over the Christmas period had sparked restocker interest, along with feedlot demand both in Queensland and NSW, driving the EYCI to a record 447c/kg. "The previous record for the EYCI was set in December 2011 at 428c/kg," Mr Thomas said.

AgForce cattle president Bim Struss, Havelock, Mitchell, said the market increase was fantastic news.

"The market is all about supply and demand, and it would appear from saleyard reports to date, the market for quality cattle has increased under pressure of numbers," he said.