Prices soar to new high
WINTER rain across the east caused cattle prices to soar to entirely new levels last week, and producers received more than they bargained for at the Murgon weaner sales on Friday.
Unexpectedly high prices at the saleyards brought on a positive spin to the winter season, with dollar amounts averaging $3.32 per kilogram.
Pratt Agencies owner Paul Pratt said although stock had already been booked in, the increase on prices was a highlight for the normally dry winter season.
“No one knows how long these prices will last, but everybody is very, very surprised they’ve gone to the heights they have now,” Mr Pratt said.
“The markets are dear, the price of feed is very dear and that’s reflected to the prices these weaners are making.
“In general there’s still a lot of country around that is understocked and people are looking to put out on the paddocks.”
Mr Pratt said he expected prices to remain high and producers who are still eager to make the most of prices had not yet missed the boat.
“I think the market will continue somewhere about where it is now, you’ll see fluctuations here and there, but in general I think it’ll stay strong,” he said.
“It’s also a weather driven thing and we might see a few frosts and cold weather, but there’s nothing stopping people from selling at the moment.”
Although the market tended to be a cycle of ups and downs for producers, feedlotters, processors and consumers, Mr Pratt said it was good to see money back in the pockets of the producers.
“The one thing people have to consider is everyone above the chain has to make money, and that’s the only concerning thing,” Mr Pratt said.
“At the moment the producers are having a good time, but it always goes around in circles.”