Overpriced and underpriced cattle

Just looking to stock a lease block near Tamworth for 5-550 head of cattle and its interesting looking at the prices floating about.

My grazing plan is telling me I have more than enough feed to get me right through Summer even with less than average rain - in fact Id like to get rid of some of the dead feed which is slowly oxidising and get some new feed off and racing if we get some Spring rain.

Cows and calves are ranging from $1000 to $1500 in the last week for pretty much the same quality - Im guessing there might be another $40-50 in cartage there but still some good buying around the place. Its still showing a 32% return on money with cost of carry taken into consideration.

Heifers seem to be up and down a bit too ranging from a high of 244c/kg down to 172c/kg in the markets Ive been looking at - if I was a bit surer of the quality of the feed on this new block it could be worthwhile getting some extra animal pressure with some heifers and extra numbers - get them in calf and turn them over.

Would be a great time to have a crystal ball to know where the season is going in northern NSW at the moment!

Last weeks markets for cows averages 149c/kg in Dubbo and 134c/kg in Tamworth - thats quite a difference and it would be interesting to know the make up of the cows there, Indicus content, quality etc etc. At those prices buying in Tamworth, and trucking to Dubbo still makes for a good margin even with cartage taken into account - now there would be a strategic move that even Sir Sid Kidman would be proud of!

The livestock market is an incredible way to make cashflow, turnover and true profits. It doesnt involve overpaid capital city executives trading fluff and paper. Australia needs to focus on producing something real instead of moving paper around the place and charging for it.

With all this data I reckon you'll see me at Inverell and Tamworth sales in the next week or so! Stop and say gday if you spot me there.

Happy farming and lets hope for a good downpour to kick Spring into gear!