Yardings followed on to build on their recovery on the week prior, adding another 6%. Offerings strengthened in NSW and VIC, which both increased 20% week on week, while QLD posted a mild decline of 4%. A total of 44,934 head were yarded on the east coast for the week ending 21st May 2021, up 2,662 head from the week prior.
Slaughter also posted gains for the third week in a row, putting on a solid increment of 5% from the week prior, bringing the total increase to 17% over the last three weeks since the end of April.
For the week ending 21st May 2021, 110,223 head were slaughtered, up 5,596 head on the week prior. SA slaughter saw a huge lift, close to doubling week to week to 5,172 head. Over the past three weeks, QLD has booked the largest increase, up 27%, while SA numbers are up over 157%.
The EYCI continued to hover about in the 880-900¢/kg cwt range, showing no real trend toward breaking easily out higher, and finished the week off only 4¢ (<1%) higher than last week, at 891¢/kg cwt. Roma, Wagga, and Dalby retain the position of key contributors to the EYCI, at over 50% of total volume. The processor share of the EYCI stood at 10.5%, while predominantly high cost per kilo vealers represented 15.5% of volumes.
An average price of 967¢/kg cwt across 261 head was recorded at Scone, due to that market being dominated by vealers fetching in excess of 1,000¢/kg cwt while Camperdown took the wooden spoon at 692¢/kg cwt. On the West coast, the Western Young Cattle Indicator (EYCI) surged 59¢ to close at 1024¢/kg cwt for the week. Vealer cattle continue to be well represented in the Index, at over 80% of total volume, but yearling steers fetched excellent prices, averaging 1090¢/kg cwt across the 46 that traded.
The national category indicators were mostly in positive territory this week, with medium steers the star performer, putting on 16¢(4%) to reach 397¢/kg lwt. However, processor steers and medium cows bucked the trend, slipping marginally by 3¢(<1%) and 2¢(<1%) respectively to close at 460¢/kg lwt and 286¢/kg lwt.
The Aussie dollar ticked up a smidgen on the prior week to finish the week to 0.774USD. Risk sentiment has improved as a result of inflation concerns beginning to calm down, but the Aussie has not been impacted by this as yet. The Chinese Renminbi, or Yuan showing strength recently, combined with elevated commodity prices, may be supportive to the AUD for the future.
The 90CL frozen cow price has continued its meteoric rise, surging another 21¢(3%) to 750¢/kg cwt for the week, culminating in a total price increment of 92¢, or 10% since late March 2021.
This week, the main driver was increased demand stemming from the approach of the US Memorial Day holiday, combined with accelerating foodservice industry activity, and a general shortage of lean beef due to low imports, particularly from Australia.
Cattle market hovers in healthy territory
Yardings followed on to build on their recovery on the week prior, adding another 6%. Offerings strengthened in NSW and VIC, which both increased 20% week on week, while QLD posted a mild decline of 4%. A total of 44,934 head were yarded on the east coast for the week ending 21st May 2021, up 2,662 head from the week prior.
Slaughter also posted gains for the third week in a row, putting on a solid increment of 5% from the week prior, bringing the total increase to 17% over the last three weeks since the end of April.
For the week ending 21st May 2021, 110,223 head were slaughtered, up 5,596 head on the week prior. SA slaughter saw a huge lift, close to doubling week to week to 5,172 head. Over the past three weeks, QLD has booked the largest increase, up 27%, while SA numbers are up over 157%.
The EYCI continued to hover about in the 880-900¢/kg cwt range, showing no real trend toward breaking easily out higher, and finished the week off only 4¢ (<1%) higher than last week, at 891¢/kg cwt. Roma, Wagga, and Dalby retain the position of key contributors to the EYCI, at over 50% of total volume. The processor share of the EYCI stood at 10.5%, while predominantly high cost per kilo vealers represented 15.5% of volumes.
An average price of 967¢/kg cwt across 261 head was recorded at Scone, due to that market being dominated by vealers fetching in excess of 1,000¢/kg cwt while Camperdown took the wooden spoon at 692¢/kg cwt. On the West coast, the Western Young Cattle Indicator (EYCI) surged 59¢ to close at 1024¢/kg cwt for the week. Vealer cattle continue to be well represented in the Index, at over 80% of total volume, but yearling steers fetched excellent prices, averaging 1090¢/kg cwt across the 46 that traded.
The national category indicators were mostly in positive territory this week, with medium steers the star performer, putting on 16¢(4%) to reach 397¢/kg lwt. However, processor steers and medium cows bucked the trend, slipping marginally by 3¢(<1%) and 2¢(<1%) respectively to close at 460¢/kg lwt and 286¢/kg lwt.
The Aussie dollar ticked up a smidgen on the prior week to finish the week to 0.774USD. Risk sentiment has improved as a result of inflation concerns beginning to calm down, but the Aussie has not been impacted by this as yet. The Chinese Renminbi, or Yuan showing strength recently, combined with elevated commodity prices, may be supportive to the AUD for the future.
The 90CL frozen cow price has continued its meteoric rise, surging another 21¢(3%) to 750¢/kg cwt for the week, culminating in a total price increment of 92¢, or 10% since late March 2021.
This week, the main driver was increased demand stemming from the approach of the US Memorial Day holiday, combined with accelerating foodservice industry activity, and a general shortage of lean beef due to low imports, particularly from Australia.
The week ahead….
With slaughter on an upward trend, indicating increasing demand for beef, and with the EYCI still holding its ground successfully, all indications are we might see another week of sideways movement in the market coming up.
On the weather front, the next 8 days are looking relatively dry in the east with <5mm tipped to fall right across the country. Despite the lack of moisture, the less damp and cold conditions may be favourable for keeping pastures growing that little bit extra in the short term, providing little incentive for producers to rush to market just yet.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo, BOM
Categories
Have any questions or comments?
Cattle price volatility lower as supply and demand find balance
Cattle market volatility has waned recently. The wild swings of 2023 saw prices move up to 70% across the course of two months. Thus far
Weather whiplash creates erratic cattle market
Roads and paddocks have begun to dry out allowing the backlog of cattle from soaked areas of Queensland and New South Wales to hit the
US herd build provides a boost
The long-predicted slowdown in US beef production has seemingly come into play this year, and Australian beef is filling some of the production gaps. Total
All hands on deck clearing cattle
Young cattle prices have bounced back after the recent rain, improving 28ȼ to 626ȼ/kg cwt. While rain helps limit the flow of cattle at one
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.
Research: Analysis of the Australian sheep flock
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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.