Key points:
- Online transactions account for more than 48% of restocker transactions for young cattle.
- For young cattle 64% of online transactions are Angus.
- Online prices are up 14% year-on-year.
Online sales are an important channel available to producers. The November wave of MLA's Beef Producer Intention Survey (BPIS) indicated that nationally 5% of cow calf producers actively use online channels to sell their cattle. Producers who are most active in the online space are those who transact 200–1,000 animals per year, and those based in Tasmania and NSW.
This week there were more than 7,000 young cattle transacted through MLA's Online Young Cattle Indicator (OYCI). In the National Young Cattle Indicator (NYCI) online sales channels make up 48% of all transactions, dominated by NSW and Queensland buyers.
What is happening in the online marketplace?
There has been a strong upward trend in online cattle prices over the past year with the OYCI is currently sitting at 373¢/kg liveweight (lwt) – up 14.5% on last year's price of 325¢/kg lwt. Interestingly, when compared to the same time last year, not only are prices up by 14%, but volumes are also up by 35%.
The best-performing categories in the OYCI at present are weaner steers (either Angus or Santa Gertrudis). At Present Angus make up 64% of all young cattle in the OYCI.
Areas contributing the most to online cattle sales are:
- Riverina, NSW
- Desert Channels, Queensland
- Northern Tablelands, NSW
- South-east Queensland
- Glenelg Hopkins, Victoria.
With all three eastern states represented in the top five sales areas, it suggests that all areas are selling.
The OYCI does not receive information on where the cattle are headed, but one can assume that the in-demand young steers are going to the paddocks with feed in NSW and southern Queensland.
The OYCI is sitting at 373¢/kg compared to the NYCI which is at 347¢/kg – a premium of 7.5%. Since May last year, the premium of the online market compared to saleyards has been stable.
Recent climatic conditions are a driver for the current premium, with Queensland and NSW producers looking to graze excess grass and looking further afield to source animals.
New price discovery tools
Last year, AuctionsPlus launched its price discovery tool which provides producers with insights into livestock prices for animals listed online, based on weight, breed and location – check out the tool here.
Attribute content to: Stephen Bignell, MLA, Manager – Market Information
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