Big moves on and off the kill floor

Northern bos indicus cattle in yard

Temperatures are dropping, but supply and slaughter continue to trek higher as big news on and off the kill floor stole the show after minimal movement on the price front.

The Eastern Young Cattle Indicator (EYCI) lost 13c this week to 721c/kg cwt, and for the most part, the majority of indicators managed just single-digit gains this week. Whilst supply was higher, which no doubt contributed, across MLA saleyard reports it was noted that prime stock (heavy and trade weights of quality) were more limited this week.

Supply was higher as saleyard throughput was up 13% week on week. This was driven by a big Victorian yardings of 22,879 head – another big tidy up of cull stock. The Victorian processor cow indicator tracked sideways despite a 66% higher throughput week on week.

The announcement of Cargill acquiring its remaining share in Teys processing looks like good timing for both parties, as evaluations no doubt benefit from rampant export fundamentals after a massive two quarters of production. From a market point of view, it’s also a vote of confidence in the medium-term future of the Australian-US beef trade despite all the trade to and fro. At this stage, it’s all business as usual on the kill floor at least, with plenty of stock to work through.  Last week’s NLRS reported national cattle slaughter figures eclipsed 150K head, the biggest for the year and the highest weekly total since December 2019.

This week on Mecardo, Jamie-Lee Oldfield investigated heifer discounts to steers, which have tightened up in 2025 despite historically high FSR last quarter (Read more here).  Heifer prices have remained resilient and could potentially close in on yearling steer prices as supply shortens in winter, and northern buying support for both backgrounding and updating herds continues its current pace.

The week ahead….

Winter shutdowns and tail-end stock will be peppered throughout sales the next month or so, but typically, this is when restockers start to think about the longer term.

Southern processors will continue to drive north, and northern backgrounders will likely start to pick off the better yearlings in the south.

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Data sources: Mecardo; Meat and Livestock Australia

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