Cattle prices jumped this week as heavy rain fell across key production areas in Queensland and northern New South Wales.
Meat and Livestock Australia's (MLA) benchmark Eastern Young Cattle Indicator (EYCI) surged beyond 1,000 cents a kilogram, as restockers and backgrounders competed for numbers.
"The cattle market shifted to a new gear off the back of this rain," Stuart Bull, MLA's market information manager said.
"Some of these regions were in need of a good drink and this rain has really helped pushed prices, along with fewer cattle coming to market."
Demand for younger cattle was strong this week and the processor cow indicator hit a record high. (ABC Landline)
At Roma on Tuesday, some weaner steers from the Winton region sold for an incredible $7 a kilogram, which equated to more than $1,900 a head.
At Dubbo, the local saleyard report said restocker demand "sparked a market boom".
"Restocker demand was a stand-out, with young cattle selling up to an impressive 80 cents per kilo dearer [than last week]," the report said.
"Young steers reached a top of $7.40/kg, while young restocker heifers sold to $6.50/kg, showcasing the strength of competition and confidence among buyers looking to replenish their herds."
Scott Loughnan, who runs a mixed farming operation west of Roma, had received more than 160 millimetres of rain when he spoke to ABC News.
"We'd organised to feed cattle all summer with forecasts of a super El Niño,"
he said.
"It was apparently never going to rain again, but this will definitely make it easier."
Mr Loughnan was in the middle of harvesting wheat, barley and chickpeas, and said for winter crops in the area, the rain was "not very good".
"I looked at some chickpeas this morning and they might not be much good, but I'm trying to look at the positives that this rain will grow us some grass and give us moisture for the next planting."
The MLA national indicators for processor cows and heavy steers have both reached record highs this week. (ABC Landline)
Record cow and heavy steers
Meanwhile, MLA's national processor cow indicator has cracked $4 a kilogram for the first time on record, and the national heavy steer indicator has also reached a new high of $4.77 a kilogram.
Global AgriTrends livestock analyst Simon Quilty said the supply of heavy steers was tight and processors were competing against feedlots to secure numbers.
"Once upon a time, feedlot operators wanted 450- to 500-kilogram steers, that was the preferred weight," he said.
"But that's now been lifted because of the lack of supply and they're taking 550 kilograms to almost 630 kilograms, creating an overlap [in demand] between processors and their needs for slaughter-ready cattle and the feedlotters who have extended the requirements of their cattle.
"So there's competition for numbers between the north and the south of Australia, plus processors versus feedlots [and] the net effect is this incredible demand for heavy steers that I think will continue."
Mr Quilty believes Australia's cattle industry is at the start of a herd rebuild and is forecasting cattle prices to increase next year.
He is forecasting heavy steer prices to rise by about 20 per cent to about $5.70/kg next year.
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