Restocker yearling steers performed best this week, improving 12¢ week on week to 358¢/kg lwt and judging from MLA saleyard reports it wasn’t hard to see why. Young cattle in most of NSW and Queensland are coming off winter in good condition and restockers look to be keen to invest.
From Charter Towers to Gunnedah, finished stock prices were
typically steady but lighter weights were drawing more interest and competition
from buyers. All Queensland indicators improved, and NSW saw sideways or minor
ups and downs in pricing. In Victoria, prices dragged lower with the exception
of yearlings bought by restockers. Improving quality did not result in improved
pricing in Wodonga and Shepparton buyers were up and down in line with the
weight of the stock available.
With the north and south see-sawing on the price front, the
result was The Eastern Young Cattle Indicator (EYCI) rising 5¢ week on week to
628¢/kg cwt. The majority of other national indicators finished the week in
narrow range of 2¢ decline to 4¢ gains compared to last week as the cattle
market looks to shift into the summer phase of the market.
It was a great week out west with Muchea experiencing tight
supply but strong yearling demand. Mount
Barker saw improvement across the board with finished steers performing just as
well as the younger, lighter offerings. The result was a 77¢ jump in the
Western Young Cattle Indicator (WYCI) to 600¢/kg cwt and a 54¢ increase in the
WA Heavy Steer Indicator to 275¢/kg lwt.
Last week East Coast cattle slaughter reached 140,871 head,
the highest figure since April 2020. This was at a peak time for
pandemic-driven policy measures with borders closing and major events
cancelled. Numbers are similar but the situation is completely different. Year-to-date East Coast slaughter is 9%
higher YoY and is at its highest point since 2019 (drought liquidation). Year-to-date beef exports are 25% higher and
at their highest point since 2015.
Thankfully this time around this level of production isn’t panic and
uncertainty-driven but rather a more harmonious result of higher supply and
stronger demand.
This week on Mecardo, Angus Brown looked at historical
trends for cattle pricing (read
more here). This season compared to
the last few seasons has seen more typical price behaviour based on the
seasons. What normally follows an easing
October market is a steady rise over November to December for cattle
prices. This depends on when the
Northern wet season kicks off.
The week ahead….
The divide between seasons North to South has seen differences in quality and weight differ significantly in the eyes of saleyard buyers. Applying this logic to weaner sales might see restockers bolt out of the gates for young stock in NSW and Queensland in the coming weeks to get the pick of the bunch.
Since widespread autumn rain failed to eventuate in southern Australia, a north-south differential has been evident in the drivers of the cattle market. It comes
There was very little movement in the cattle market this week, with winter weather now impacting the quality of stock available. This saw processors shift
The world’s demand for protein has not waned this year despite plenty of global unrest. Australian beef exports have reached new highs across the board
Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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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.
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.
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.
Buyers place their faith in youth
From Charter Towers to Gunnedah, finished stock prices were typically steady but lighter weights were drawing more interest and competition from buyers. All Queensland indicators improved, and NSW saw sideways or minor ups and downs in pricing. In Victoria, prices dragged lower with the exception of yearlings bought by restockers. Improving quality did not result in improved pricing in Wodonga and Shepparton buyers were up and down in line with the weight of the stock available.
With the north and south see-sawing on the price front, the result was The Eastern Young Cattle Indicator (EYCI) rising 5¢ week on week to 628¢/kg cwt. The majority of other national indicators finished the week in narrow range of 2¢ decline to 4¢ gains compared to last week as the cattle market looks to shift into the summer phase of the market.
It was a great week out west with Muchea experiencing tight supply but strong yearling demand. Mount Barker saw improvement across the board with finished steers performing just as well as the younger, lighter offerings. The result was a 77¢ jump in the Western Young Cattle Indicator (WYCI) to 600¢/kg cwt and a 54¢ increase in the WA Heavy Steer Indicator to 275¢/kg lwt.
Last week East Coast cattle slaughter reached 140,871 head, the highest figure since April 2020. This was at a peak time for pandemic-driven policy measures with borders closing and major events cancelled. Numbers are similar but the situation is completely different. Year-to-date East Coast slaughter is 9% higher YoY and is at its highest point since 2019 (drought liquidation). Year-to-date beef exports are 25% higher and at their highest point since 2015. Thankfully this time around this level of production isn’t panic and uncertainty-driven but rather a more harmonious result of higher supply and stronger demand.
This week on Mecardo, Angus Brown looked at historical trends for cattle pricing (read more here). This season compared to the last few seasons has seen more typical price behaviour based on the seasons. What normally follows an easing October market is a steady rise over November to December for cattle prices. This depends on when the Northern wet season kicks off.
The week ahead….
The divide between seasons North to South has seen differences in quality and weight differ significantly in the eyes of saleyard buyers. Applying this logic to weaner sales might see restockers bolt out of the gates for young stock in NSW and Queensland in the coming weeks to get the pick of the bunch.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Nutrien Ag Solutions, Mecardo
Categories
Have any questions or comments?
Brazilian beef tariffs bullish for Aussie beef?
The leaner winter months have seen the seasonal uptick in prices continue for cattle markets, but news on the global trade front could create more
NSW yards overflow as Queensland’s dry up
Since widespread autumn rain failed to eventuate in southern Australia, a north-south differential has been evident in the drivers of the cattle market. It comes
Winter chill weighs on cattle weights
There was very little movement in the cattle market this week, with winter weather now impacting the quality of stock available. This saw processors shift
Export records fall as demand beefs up
The world’s demand for protein has not waned this year despite plenty of global unrest. Australian beef exports have reached new highs across the board
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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.
SERVICES AND CAPABILITIES STATEMENT BROCHURE
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.