The outlook for this year’s Queensland bull selling season remains optimistic.
But, ongoing dry weather conditions in western parts of the State are concerning some livestock agents and stud cattle producers.
The impact of drought could potentially reduce demand for the modest quality stud beef cattle during the traditional August to November selling season, according to Elders stud stock specialist Michael Smith.
“It’s a tricky one this year,” Mr Smith said.
“To start with, we always look back at the previous results and we aim to achieve stud sale prices similar to last year.
“Clearance is always first priority, then you work on a price average in my opinion.
“If we can see averages maintained within a $500 variance of last year’s average prices I think a lot of cattle producers would be happy with that.”
Mr Smith said his concern is the increasing dry and drought impacted areas particularly in western Queensland.
“That’s what is in the back of our mind and how much bull buying demand will come from those areas because the herd rebuild didn’t happen in certain regions due to lower summer rainfall,” he said.
“That lack of summer rain across parts of western Queensland is starting to catch up with some cattle producers.”
Mr Smith added he doesn’t feel there has been enough price correction in the commercial cattle market to place significant downwards pressure on the stud cattle market at the moment.
“I think what you’ll see going forward is the superior product continuing to sell well and the lesser quality becoming the first part of the stud cattle market to see some downward price corrections,” he said.
Last year’s stud cattle selling season saw two different levels of demand, according to TopX Roma livestock manager Carl Warren.
“Good quality sires sold very well, but the second run of bulls traditionally going to western districts for big volume buyers didn’t have as strong demand last year due to ongoing drought in western Queensland,” Mr Warren said.
In terms of the commercial cattle market, Mr Warren said prices had soften across the board from the peaks experienced last year but noted there was still the isolated sale breaking price records that showed buyer confidence.
“If you look at commercial cattle prices over the past 10 years, the recent prices are still at record high levels,” he said.
Interestingly, Elder’s Mr Smith said a number stud producers who experienced large increases to their bull price averages last year will lift their offering of bulls this year.
“It’s not to cash-in on the higher bull prices, but to increase supply numbers to ensure their regular clients have the opportunity to purchase bulls at a more affordable price point,” he said.
