That's the view of agribusiness specialist Rabobank in its Australian 2019 Beef Cattle Seasonal Outlook, as the Australian cattle herd sits at a 20-year low.

Senior animal proteins analyst Angus Gidley-Baird, the report's author, said the lack of numbers would make the market very sensitive to any changes in demand and exaggerate any price upside from rain and better conditions.

"Any meaningful rain, particularly in Queensland and New South Wales, would see beef producers - in addition to feedlots and processors - jump back into the market to buy cattle from what is a very limited pool," Mr Gidley-Baird said.

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"This could see prices rise by more than 20 per cent."

Landmark Harcourts Armidale livestock marketing agent Angus Laurie said he thought one distinct group would benefit most from falls.

"In terms of the New England, I can see breeders benefiting from widespread rainfall, due to increased competition for store cattle, but I cannot see immediate effects on the New England for the vast majority of farmers, with rainfall, because of the time of year.

"I think it's just getting too cold."

Mr Laurie said he thought any increased competition for local cattle would not come from home.

"I don't think it will be local demand; I think it will be demand from outside the New England - but probably still from within the north-west ...

"We're having a lot of inquiry for store cattle from southern Queensland, western NSW and also southern NSW, but I think if we can get a winter forage crop season - particularly around Tamworth, Gunnedah, Narrabri - then that'll change things and increase demand for restocker cattle in that part of the world."

Mr Gidley-Baird said that, should the season remain drier than normal, prices would ease and remain below 2018 levels.

Rabobank modelling is predicting an Eastern Young Cattle Indicator of between $4.00/kg and $4.50/kg throughout 2019.

"While dry conditions would force additional sales and reduce producer demand, there is still much more upside potential for prices, rather than downside," he said.

"It just all hangs on how much falls out of the sky."

The Bureau of Meteorology, in its recent climate and water outlook for the next three months, said "warmer-than-average conditions are likely to persist, with a drier-than-average end to autumn likely in the east".

Senior climatologist Felicity Gamble said there was "a 70 per cent chance of El Nino forming, even if only briefly, over the coming months", which would bring drier-than-average conditions from winter to spring.

Mr Gidley-Baird said seasonal conditions in Queensland and NSW would have the greatest bearing on the domestic cattle outlook.

Current dry conditions would potentially force producers to offload more stock throughout 2019.

"With many areas, particularly in Queensland, reporting lower breeder numbers, calf numbers will be down this year and this will continue to limit production prospects," he says.

Mr Laurie said that, in his area, "we have sold a lot of numbers, but there are still numbers around".

"With the Armidale, Walcha and Guyra region being predominately breeder-based, there are still plenty of cows in the district, still plenty of weaners, not many feeders."

Mr Gidley-Baird said the overall drop in production had been compounded by the Queensland floods - affecting a vast area accounting for about 17 per cent of the state herd.