Angus cattle

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.

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Data sources: MLA, Nutrien Ag Solutions, Mecardo

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