Cattle market goes up following heavy rains
A SOUTH Burnett cattle agent has said farmers and the rural community should be confident in the cattle market following heavy rainfalls two weeks ago.
James Bredhauer from Aussie Land and Livestock said the market was not up to where it was in the better parts of 2016 but it was certainly close.
"The rain from the cyclone helped absolutely, it was definitely 100% rain-related,” Mr Bredhauer said.
"People now have feed, so they can feed their cattle.”
Mr Bredhauer said the market recovery began just before the rain from ex-Tropical Cyclone Debbie.
"That sort of brought the market back,” he said.
"Four to five weeks ago the market was crap, it was going backwards, but the rain with a few scattered storms in a few areas, that put a bit of strength back into the market.
"Then came the cyclone, with the big rain and it stopped a lot of cattle coming on the market, people were going to have to sell them without the rain.”
Mr Bredhauer said this showed the principle of supply and demand in its most basic form.
"If they have feed, they don't have to put them on the market and oversupply it,” he said.
"If they don't have have grass, then they've got to buy feed and it costs a lot of money to feed cattle.”
He said the strong market meant rural towns would do better.
"It gives us farmers confidence to spend money in the towns,” he said.
"The money farmers make all flows back through to the community.
"When farmers make money they don't squirrel it away, they put it back into assets on their farms or in the towns, developing those assets up.”
Mr Bredhauer said he believed the market would remain strong.
"This dry weather might ease things off but I think it will remain strong in areas that have rain,” he said.
"There were a lot of areas that missed out like western Queensland but prices could go up.
"Store cattle and quality breeders are likely to get dearer, fat cattle might get a little dear, good-quality fat cattle will definitely get dearer.”
Mr Bredhauer said the market would continue to be dictated a bit by what the world market was doing but supply and demand was the main aspect affecting the Australian market.
"There is a lot of confidence in the market now,” he said.
"Farmers can get through winter without having to sell cattle now and walk out without a huge loss of money.
"There are some limitations with the market but generally it is all quite positive.”