Prices took a tumble this week at saleyards across the nation, every indicator suffered drops of over 20 c/kg. Early data suggests supply was flat week on week but is significantly higher than the 5-year average for the same selling week. Similarly, the level of buyer competition at the yards we’ve seen over the last few weeks dissipated.
The Eastern Young Cattle Indicator (EYCI)
fell 6% (43 c/kg) week on week finishing at 628 c/kg cwt. Headcount for the
indicator was down as well by 14% (3.6k head) to 22.5k head. Feeders were the
largest buying group for the week, accounting for 57% of the cattle purchased.
Roma was the dominant saleyard of the indicator accounting for 20% of the
volume and trading on average 4% (27 c/kg lwt) above the indicator average for
the week.
Processor cows dropped by 9% (24c/kg) to
234 c/kg lwt to the same price it was in early May 2023, after coming within 30
c/kg of the price 1 year ago last week. Wagga had the highest volume of 10% and
helped soften the price drop of the indicator trading on average 5% above the
indicator.
The Western Young Cattle Indicator (WYCI)
had the largest drop in prices out of the indicators this week falling by 14%
(71 c/kg) to 427 c/kg cwt. The WYCI hasn’t followed the same trajectory as its
Eastern counterpart, missing out on the rally in price seen by the majority of
indicators late at the end of 2023. This has caused some eastern-based buyers
to make the trip west to secure cheaper stock.
Slaughter for the previous week was up 7%
(8.5k head) to 122.5k head nationally, the highest number for 2024 so far and
11% above the 5-year average for weekly slaughter volumes. Last week’s figure
is 10k head off the highest slaughter number for 2023 which occurred in
mid-November. This Points to processors operating at near capacity levels,
which might be driving the decrease in demand seen across the indicators for
the week as they work through the current outlay of cattle.
Preliminary yarding numbers according to
the MLA were flat week on week, at 80.5k head passing through saleyards across
the nation. This is 61% above the 5-year average for the same sales week as
producers are cashing in on the recent price rises of the indicators. These
recent high levels of supply have found support for the most part from strong
restocker demand that has helped keep prices buoyant.
Next week
With processors nearing recent historical capacity after weeks of elevated supply, competition at the saleyard rail might begin to erode if throughput continues at this level. This would put downward pressure on prices in the short term.
The long-predicted slowdown in US beef production has seemingly come into play this year, and Australian beef is filling some of the production gaps. Total
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In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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A stall in demand?
Next week
With processors nearing recent historical capacity after weeks of elevated supply, competition at the saleyard rail might begin to erode if throughput continues at this level. This would put downward pressure on prices in the short term.
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Data sources: MLA, Mecardo
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The long-predicted slowdown in US beef production has seemingly come into play this year, and Australian beef is filling some of the production gaps. Total
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Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
Listen to the podcast
Join the Mecardo team for the Commodity Conversations podcast, where we provide short weekly market recaps and longer conversations with guests to discuss the drivers and trends in livestock, grain and fibre markets.
Research: Analysis of the Australian sheep flock
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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We don’t just bring you the most up to date market insights. Find out more about Mecardo’s services including risk management advisory, modelling, benchmarking, research & consultancy.