Cattle mob in a green paddock

This spring-to-summer period has driven a significant improvement on the confidence front when we compare it to last year. With exports humming, capacity built and rainfall reaching cattle country in the early parts of the wet season, restockers have been driving the market upward at the conclusion of 2024.

NSW saleyard reports best demonstrated the confidence in the current market. Lighter cattle didn’t faze the restockers in Dubbo and competition was fierce across all categories in Wagga. Restockers continue to push indicators higher with restocker heifers improving 10¢ to 309¢/kg lwt and restocker steers rising 8¢ to 390¢/kg lwt. Yearling steers bought by feeders averaged a 9¢ improvement to 369¢/kg lwt. The result was the Eastern Young Cattle Indicator (685¢/kg cwt finishing this week just 1¢ below the high tide mark for this year.

With a bit of help from a stumbling Aussie dollar, 90CL export beef prices eclipsed the AUD$10/kg mark last week. This new high tide mark was spurred on by the need to get orders in before Christmas shutdown but it’s a significant milestone, nonetheless.  The national processor cow indicator rose 10¢ to 277/kg lwt this week.

This week on Mecardo, Jamie-Lee Oldfield did a wrap of the beef export markets.  Strong slaughter and demand continue to drive Australian beef export volumes towards a record year (read more here). Whilst the US and Japan have been importing growing volumes, China has lagged behind this year for importing Australian beef, with volumes 10% lower than 2023 and 7% below the 5-year average. Brazilian beef has been the focus for China throughout 2024, but with elevated cattle prices in Brazil putting pressure on the Brazilian processing sector and reports of a temporary shutdown of 11 domestic processing plants, this could pave the way for more Australian beef heading to China in early 2025.  

Next week

Saleyard shutdowns are beginning for the Christmas period and next week will see the last sales for the year. If this week’s market is anything to go by, demand will be strong for quality young cattle from restockers as supply tightens up.

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Data sources: MLA, Argus, Mecardo

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