Thursday 23 August 2012
Tough time for farmers
The majority of WA cattle producers throughout the south of the state continue to face difficult seasonal conditions, with many anxiously awaiting further winter falls.
Quality continues to be an issue, due to a very dry July and cooler temperatures.
Feed supplies are also a concern, with reportedly tight hay stocks after a tough bailing year last year.
This is impacting saleyard return, with grass fed yearling steers averaging 388¢/kg cwt this week at Muchea and 309¢/kg cwt at Great Southern.
With both seasonal and income pressure, the run of poor quality lines are expected to continue into late winter, unless much needed falls are received across wide regions of the state.
The majority of the better lines, including a limited supply of supplementary fed steers continue to head direct to processors.
However, the recent spike in grain prices may also start to pressure grain feeder margins in coming months.
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