The market has been erratic since the beginning of the year, with elevated levels of supply and varying quality driving large movements in price. The Eastern Young Cattle indicator has traded in a 93¢/kg range in the first 6 weeks of the year as the market grappled to find its balance returning from the Christmas break. This week saw a drop in supply and a lift in demand, sending the value up by 3% to close the week at 654¢/kg. Roma was the largest contributing saleyard, with just over a quarter of the total volume. Its saleyard report mentioned “wonderful falls of rain” during the week and a full buying field present and active.
Restocker heifers experienced a 7% lift in value up to 306¢/kg for the week, whilst their male counterparts were flat week on week at 380¢/kg. The heifer to steer discount closed by 5%. As a result, it is 25% cheaper for the female than males. Roma again had the largest contribution to the indicators, with half of the volume for the heifers and 44% for the males. Dalby was second in both indicators for volume contribution. Dalby’s saleyard report talks about an improvement in the quality of pens of offer for a full buying field all operating in the market.
Processor cows had smaller movements compared to other indicators for the week; value rose by 3%, and yardings fell by 1%. The indicator finished the week at 273¢/kg, with Wagga accounting for the largest contribution.
Initial yardings data show a decrease in the supply of cattle of 21% as the market comes off its supply surge seen over the last few weeks, where producers were pushed to enter the market due to dry summer conditions. Rain on the east coast would have eased some feed supply concerns for producers.
Slaughter for the week prior was up by 21% on the week before that due to returning to a full working week, while the comparison week had the Monday Australia Day long weekend, which would have seen one less day of operation for processing plants. Compared to the 5-year average for the same selling week, national slaughter was 30% higher this year.
Buyers back bidding
Next week
Processors and feedlots were back and active in the market this week following the surge in supply, which satisfied their demand and saw them not as active. With tighter supply this week, the demand will hopefully flow into next week, supporting prices.
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Data sources: MLA, Mecardo, BOM
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