Dubbo agents have again signified a consolidated cattle draw of 5620 for their prime sale on February 9.
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Some analysts are predicting a 7000-plus draw sometime in the near future if we do not see a major rain event.
Prime cattle prices are certainly a little softer but not to the extent that producers are yet unduly worried.
Processors have found supplies tight for the early part of the year with Roma already cancelling one sale and offering seriously reduced numbers at another. Most NSW centres, with the possible exception of Dubbo and maybe one or two others, have not yet had to cope with excessive numbers.
Much speculation about why this is so, but fair to say a wonderful 2016 gave many producers a bumper bottom line and if they sell now they will need to buy back in and restocker cattle are one sector of our game that still appears to be creating immense demand. Part of the equation would be the intense heat particularly in the back country. Children are now only just getting settled into school and many graziers took the opportunity to enjoy long overdue holidays.
Processors are complaining about the difficulty in selling the end product with very flat markets in our primary export destinations. Some export works have already scaled back to four days a week with others still going Monday to Friday with reduced tallies on all shifts. All eastern states are reporting reduced kills.
Wool is in the news with some outstanding sales recorded. Small consignments of AAAM merino weaner fleece recorded 2156c/kg clean for 14.4 micron. One bale 13.7 micron ultrafine sold for 2153c/kg clean. Major lines of 17.3 micron wool sold to 2015c/kg clean. Good merino wool in all its forms is attracting well-deserved support after a long time in the doldrums.
Maydan feedlot near Warwick has a successful history of feeding Wagga cattle and was chosen by Gina Rhinehart to feed her cattle destined to be the first consignment under her new 2GR brand sent to China.
I understand these cattle were drawn from her aggregation between Mendooran and Binnaway. Currently Hancock Pastoral Co. has some 900 cattle on feed at Maydan but these numbers are expected to grow as more are suitable to go into this full-blood Wagga program. The first container held 50 full bodies in a “natural fall” agreement that the entire carcase was dispatched, meaning the host company was not left with off-cuts to unload elsewhere.
Hancock by year’s end hopes to have more than one line of beef under its marketing banner with 2GR at the top, followed by Wagga infused product and also lines of conventional beef supply. So far, according to a spokesperson, no beef in the pipeline has any connection with the Kidman and Co buy-out.