The feeder value continues to climb throughout the eastern states and restockers are jostling to fill their paddocks.

In late January and early February (the market) will get red hot,” he said- Joe Wilks

It is this alignment of competition between farmers, processors and a buoyant export market which is driving the price spike.

Elders Wagga livestock agent Joe Wilks said he doesn’t see the prices abating any time soon.

He said traditionally cattle numbers started to decline before Christmas but this had not been the case at the Wagga Livestock Marketing Centre.

“The young feeder cattle and feeder steers were firm and the heifers were dearer this week,” he said.

The Eastern Young Cattle Indicator was at 595c/kg at the close of markets on Wednesday.

Mr Wilks said a couple of additional buyers had entered the market at Wagga in recent weeks and this had a positive impact on prices.

And he tips demand to ramp up for the better bred lines of restocker cattle before the traditional New Year weaner sales.

“There has been so many females killed and that is showing in the current restocker price,” he said.

“In late January and early February (the market) will get red hot,” he said. Meanwhile, the trend continued at Wodonga this week too.

Meat and Livestock Australia market reporter, Leann Dax said rather than the processors setting the rates on Tuesday it was the feedlots.

She said the feedlots certainly dominated the market for heavy grown steers (500kg to 600kg) and as a result prices lifted by 4c with most lines selling at 274c/kg to 318c/kg in this category.

She said processors, chasing similar weight categories, paid 274c/kg to 293c/kg. At Wagga on Monday it was the light Angus feeder steers which were considered the big market movers in setting a tone for higher prices.

Ms Dax said feeder steers, weighing 280kg to 320kg surged in price by 20c/kg to return a top of 349c/kg.