A decline in supply but a boost to rain gauges to the North saw the cattle market tick upward again this week. This winter we have seen a wave of supply come through after prices improve, but will this rainfall event be enough to create an even stronger wave of restocker demand?
Starting up North, umbrellas and feeder steers were
in equal high demand as Eastern Queensland and NSW got a proper soaking (See
Figure 1). The impact this week on the market was a significant decline in
supply as Queensland yardings were down 58% week on week per NLRS estimates at
the time of publishing.
Saleyard reports in Roma reported all regular buyers
present but a much quieter saleyard as numbers dropped over 50% week on week. Southern processors were
back in Dalby and feeder buyers began to throw their weight around. Armidale
and Dubbo saw strong demand for particular lines of lighter cattle as
restockers jumped back in as the spring outlook improved.
Supply out of the Riverina was steady again this week and
processor buyers found well-finished lots and grain-assisted yearlings according
to saleyard reports. With much of the region facing a challenging season and
meaningful rainfall still on the wish list for producers, the level of
restocker interest varied greatly at Wagga. Further south, Victorian yardings
were up 41% week on week and the majority of indicators finished the week
lower. The further south you head the less likely you are to run into restocker
competition.
Despite the tug of war in conditions, demand and supply
happening on the East Coast, the result was the overall improvement in the
cattle market this week. The Eastern
Young Cattle Indicator (EYCI) improved 5¢ to 664¢/kg cwt, the National Heavy
steer indicator increased38¢ to 359¢/kg lwt and Processor cows rose 20¢ to
290¢/lg lwt.
Next week
Labour Day in the United States is approaching which is a key date for exporters. It signals the US summer coming to an end which typically results in an easing of domestic US beef demand over our Spring. It will be interesting to see if export demand is immune to seasonality in the next two months.
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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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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Bidding in the rain
Starting up North, umbrellas and feeder steers were in equal high demand as Eastern Queensland and NSW got a proper soaking (See Figure 1). The impact this week on the market was a significant decline in supply as Queensland yardings were down 58% week on week per NLRS estimates at the time of publishing.
Saleyard reports in Roma reported all regular buyers present but a much quieter saleyard as numbers dropped over 50% week on week. Southern processors were back in Dalby and feeder buyers began to throw their weight around. Armidale and Dubbo saw strong demand for particular lines of lighter cattle as restockers jumped back in as the spring outlook improved.
Supply out of the Riverina was steady again this week and processor buyers found well-finished lots and grain-assisted yearlings according to saleyard reports. With much of the region facing a challenging season and meaningful rainfall still on the wish list for producers, the level of restocker interest varied greatly at Wagga. Further south, Victorian yardings were up 41% week on week and the majority of indicators finished the week lower. The further south you head the less likely you are to run into restocker competition.
Despite the tug of war in conditions, demand and supply happening on the East Coast, the result was the overall improvement in the cattle market this week. The Eastern Young Cattle Indicator (EYCI) improved 5¢ to 664¢/kg cwt, the National Heavy steer indicator increased38¢ to 359¢/kg lwt and Processor cows rose 20¢ to 290¢/lg lwt.
Next week
Labour Day in the United States is approaching which is a key date for exporters. It signals the US summer coming to an end which typically results in an easing of domestic US beef demand over our Spring. It will be interesting to see if export demand is immune to seasonality in the next two months.
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Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Steiner Consulting Group, 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.