The latest insights from Rural Bank reveal encouraging signs for rural property markets, driven by shifts in cattle and dairy prices.

According to the October Insights from Rural Bank, cattle prices are likely to see a marginal increase with a firming of restocker demand and a slight reduction in cattle yardings at local markets.   

Slaughter rates have remained stable but are expected to show a modest decline during October, should the rainfall forecast eventuate as supply chain issues and a reduction of cattle on local markets slow processing capacity.

The latest Bureau of Meteorology forecasts, as noted by Rural Bank, also show a strong chance of above-average rainfall in major cattle regions in the coming months. This is expected to increase restocker demand and decrease cattle yardings marginally. Both factors would support an uplift in prices.

Australian beef is set to benefit from an expected increase in US imports throughout the rest of 2024. This should mean that extremely high Australian beef exports to the US are maintained. Import demand for Australian beef is likely to remain on par with 2024 levels throughout the majority of 2025 as well. Australia has now climbed to be the US’s second-largest source of beef imports, just behind Canada. In 2023, Australia was ranked the fifth largest supplier. Australia has contributed over 20% of the total US beef import volume in 2024. This is up from 14% in 2023, highlighting the extraordinary year of exports to the US.

In September, southern Queensland and northern New South Wales experienced average rainfall, keeping these regions on track for a promising above-average crop season.

Meanwhile, Rural Bank reported that global dairy prices increased in the past month. This suggests an improvement in global demand. The Global Dairy Trade (GDT) index rose in each of the last two fortnightly auctions for a total gain of 1.9%. This placed the GDT index 22.1% higher year-on-year and at its highest point since October 2022. Price trends have varied across the major dairy products. Cheddar saw the largest gains in the last month, up 6.5% - and continues the steady climb in cheddar prices, which have risen 15.7% since July. Whole milk powder (WMP) also grew in the last month, up 4.8% to its highest point since October 2022. Skim milk powder (SMP) prices were relatively steady in the recent GDT auction. 

Travis Wentriro, Network Manager at Raine & Horne Rural, said, “The recent insights from Rural Bank highlight key drivers that could boost demand for rural properties.

“The anticipated rise in cattle prices, supported by more robust restocker demand and improved rainfall in major cattle regions, creates a positive outlook for graziers. This potential for better returns in the livestock sector will likely attract investors looking for reliable rural property assets.

Contact your local Raine & Horne Rural office today if you’re considering listing a rural property.