Young cattle prices have bounced back after the recent rain, improving 28ȼ to 626ȼ/kg cwt. While rain helps limit the flow of cattle at one end of the supply chain, at the other, plenty of beef is on deck and headed overseas.
The story at Roma and Dubbo was
big yardings and keen demand for big cattle with buyers bidding in dearer
markets for heavier stock. The national heavy steer indicator improved 4ȼ to 307ȼ/kg lwt as a result.
The national feeder steer
indicator improved 16ȼ to 334 ȼ/kg lwt. Feeders were back to bidding, as the east
coast rain has washed anxiety about buying cattle to finish for later in the
year. March export data was released
this week and those feeder buyers will like what they see. Japan is bouncing
back on the export front this year, importing 21007 tonnes swt beef in March
(third-best month since 2022). Grainfed
beef exports to Japan are 15% higher YoY which is beneficial news. A return to
business as normal for the Australian-Japan beef trade (and renewed grain-fed
cattle demand) will be an important support mechanism to work through supply
over winter.
Making sure we don’t forget who
is really driving the export demand at the moment, US beef exports have had the
strongest start to a calendar year since 2016, with over 68,000 tonnes of beef
shipped. That’s 79% higher year on year and 67% higher than the 5-year
average.
Wagga also saw similar bidding trends
favouring heavy cattle but of note in saleyard reports was the focus of
processors bidding for and acquiring cows.
The processor cow indicator is up 7 ȼ for the week but 31 ȼ for the
month to sit at 240 ȼ/kg.
As mentioned in this week’s cattle market analysis by Angus
Brown (read
here), the 90CL Frozen Cow export beef price to the US has rallied strongly
over recent weeks. Much like Willy Wonka’s invisible elevator, the 90CL keeps
rising, reaching 938 ȼ /kg last week. Steiner reports that US buyers of lean beef
will remain aggressive moving forward and that the holiday period’s impact on
slaughter and beef supply available for export is of keen interest to the US.
Next week
The recent rainfall will benefit pastoralists in Queensland, but perhaps of more interest will be the March live cattle export figures due out next week. Indonesia are keen on beef, they imported over 10K tonnes of beef in March, the highest figure since May 2016. and a big return to the trade this year can only help with the supply situation.
With rain falling in parts of southern Australia in recent days, and more set to follow, there could be increased opportunity for restocker movement in
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All hands on deck clearing cattle
The story at Roma and Dubbo was big yardings and keen demand for big cattle with buyers bidding in dearer markets for heavier stock. The national heavy steer indicator improved 4ȼ to 307ȼ/kg lwt as a result.
The national feeder steer indicator improved 16ȼ to 334 ȼ/kg lwt. Feeders were back to bidding, as the east coast rain has washed anxiety about buying cattle to finish for later in the year. March export data was released this week and those feeder buyers will like what they see. Japan is bouncing back on the export front this year, importing 21007 tonnes swt beef in March (third-best month since 2022). Grainfed beef exports to Japan are 15% higher YoY which is beneficial news. A return to business as normal for the Australian-Japan beef trade (and renewed grain-fed cattle demand) will be an important support mechanism to work through supply over winter.
Making sure we don’t forget who is really driving the export demand at the moment, US beef exports have had the strongest start to a calendar year since 2016, with over 68,000 tonnes of beef shipped. That’s 79% higher year on year and 67% higher than the 5-year average.
Wagga also saw similar bidding trends favouring heavy cattle but of note in saleyard reports was the focus of processors bidding for and acquiring cows. The processor cow indicator is up 7 ȼ for the week but 31 ȼ for the month to sit at 240 ȼ/kg.
As mentioned in this week’s cattle market analysis by Angus Brown (read here), the 90CL Frozen Cow export beef price to the US has rallied strongly over recent weeks. Much like Willy Wonka’s invisible elevator, the 90CL keeps rising, reaching 938 ȼ /kg last week. Steiner reports that US buyers of lean beef will remain aggressive moving forward and that the holiday period’s impact on slaughter and beef supply available for export is of keen interest to the US.
Next week
The recent rainfall will benefit pastoralists in Queensland, but perhaps of more interest will be the March live cattle export figures due out next week. Indonesia are keen on beef, they imported over 10K tonnes of beef in March, the highest figure since May 2016. and a big return to the trade this year can only help with the supply situation.
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Click on graph to expand
Click on graph to expand
Data sources: Mecardo, MLA, BOM
Categories
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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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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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.