Rainfall means opportunity and restockers with windscreen wipers on drove an increase in lightweight steer and heifer indicators nationally. The intent of processors as economic conditions and supply fundamentals continue to support the cattle market on the run to Christmas.
Supply continues to rise, but reaction to rainfall and some
improvement in weight and quality of the offering was the driving factor behind
the mixed result across indicators.
Price pressure for heavy steers and processor cows eased slightly, with the
National Heavy Steer indicator losing 11¢ to 323¢/kg lwt and the National
Processor Cow Indicator saw a 5¢ reduction to 265¢/kg lwt. The National
Restocker Heifer indicator improved 13¢ to 284¢/lg lwt and the Restocker
Yearling Steer Indicator jumped 15¢ to 366¢/kg lwt. Overall young cattle prices
on the East Coast balanced out to a 1¢ decline to 629¢/kg cwt.
Rainfall didn’t deter the throughput of cattle in Roma as
the market firmed. Dalby did see some weather impacts on supply, creating a
premium for heavier lines of cattle. Wagga had the opposite problem, with the
yarding skewing heavier. This suited export and feeder buyers however are
restockers still waiting for more rain in the Riverina to be throwing their hat
in the ring. Further North did get a drink, which led to stronger competition
for lighter cattle from feeders and backgrounders at Dubbo this week.
Weaner prices are currently stronger than last year but
there is potential for some upside according to this week’s cattle analysis on
Mecardo by Angus Brown (read
more here). Tighter supply of southern weaners due to the tough dry winter
down south is likely and could contribute to a rally in prices if the wet
season kicks early to the North. This week’s rainfall in cattle country either
way should lend some support to young cattle prices in the next fortnight
(Figure 3).
It was another record week for weekly Australian Cattle
Slaughter with 145,687 head processed per the NLRS. With elevated supply,
strong export demand and a weaker Aussie dollar since the US election, it is no
wonder the processing sector is motivated to push the envelope. Whether
capacity can go higher or weekly figures are likely to remain around the 140,000
mark is yet to be determined, what we do know is that global beef buyers should
continue to prioritise Aussie beef in the short term.
Next week
With the harvest wrapping up in Queensland, an early chunk of rain having fallen and less than 5 weeks till Christmas, attention will likely turn to lighter cattle in the very near term.
The southern weaner sales are almost over, and despite opening a little weaker than December, the results have positive compared to last year and compared
Despite saleyards and processors being shut for the holidays, the market continues to be thrown curveballs. The announcement of quota limits for beef imports into
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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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Attention turns to lighter cattle
Supply continues to rise, but reaction to rainfall and some improvement in weight and quality of the offering was the driving factor behind the mixed result across indicators. Price pressure for heavy steers and processor cows eased slightly, with the National Heavy Steer indicator losing 11¢ to 323¢/kg lwt and the National Processor Cow Indicator saw a 5¢ reduction to 265¢/kg lwt. The National Restocker Heifer indicator improved 13¢ to 284¢/lg lwt and the Restocker Yearling Steer Indicator jumped 15¢ to 366¢/kg lwt. Overall young cattle prices on the East Coast balanced out to a 1¢ decline to 629¢/kg cwt.
Rainfall didn’t deter the throughput of cattle in Roma as the market firmed. Dalby did see some weather impacts on supply, creating a premium for heavier lines of cattle. Wagga had the opposite problem, with the yarding skewing heavier. This suited export and feeder buyers however are restockers still waiting for more rain in the Riverina to be throwing their hat in the ring. Further North did get a drink, which led to stronger competition for lighter cattle from feeders and backgrounders at Dubbo this week.
Weaner prices are currently stronger than last year but there is potential for some upside according to this week’s cattle analysis on Mecardo by Angus Brown (read more here). Tighter supply of southern weaners due to the tough dry winter down south is likely and could contribute to a rally in prices if the wet season kicks early to the North. This week’s rainfall in cattle country either way should lend some support to young cattle prices in the next fortnight (Figure 3).
It was another record week for weekly Australian Cattle Slaughter with 145,687 head processed per the NLRS. With elevated supply, strong export demand and a weaker Aussie dollar since the US election, it is no wonder the processing sector is motivated to push the envelope. Whether capacity can go higher or weekly figures are likely to remain around the 140,000 mark is yet to be determined, what we do know is that global beef buyers should continue to prioritise Aussie beef in the short term.
Next week
With the harvest wrapping up in Queensland, an early chunk of rain having fallen and less than 5 weeks till Christmas, attention will likely turn to lighter cattle in the very near term.
Have any questions or comments?
Click on graph to expand
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Data sources: MLA, BOM, Mecardo
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.