cattle_035

Confidence and enthusiasm at the yards remains strong as cattle markets continue to defy spring slumps. Heavy cattle remain in relative abundance and feedlot buyers across the east coast continue to chase stock to bring onto feed in a competitive market as buyers begin to travel further to access cattle.

Indicative NLRS yardings had throughput at 86.5k head this week, which was 2% higher than last week. While not the biggest yarding this year, the flush of numbers is 54% higher than the five year average for this time of year. Plenty of stock on hand makes the prices we are seeing at this time of year even more incredible. The Eastern Young Cattle Indicator, EYCI, improved 9¢ to 907¢/kg cwt.

All saleyard indicators improved this week, but the rises were more modest than in previous weeks. Feeders were best on ground, improving 11¢ to 492¢/kg lwt. A 9% week on week decrease in processor cow numbers that qualified for the indicator, but neither decline nor improvement in price/kg, shows that we are probably approaching the ceiling of willingness to pay for cull cows. Slaughter volumes show us that volume is still in heavy demand, but export pricing jumping higher would be the best case scenario moving forward.

The US retraction of reciprocal tariffs was motivated by rising retail beef costs in the United States, but it is unlikely they are out of the woods yet. With heavy steer and processor cow prices continuing to push the envelope for this time of year here in Australia, processors and exporters will be keen to push for higher returns from buyers. With Brazil tariffs on beef to the US still sitting at 66%, moving away from reliance on Australian beef will be difficult. Who will blink first?

Next week

Slaughter remains at the tippy top of current capacity and will remain strong as we approach Christmas. Securing good quality yearlings for the upcoming season will remain on restocker agendas. Heifers still have some ground to gain on steers back to feedlots and the paddock, which could see crafty buying if numbers don’t remain at these highs.

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Click on graph to expand

Click on graph to expand

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Data sources: Mecardo; Meat and Livestock Australia; AuctionsPlus

Have any questions or comments?

We love to hear from you!
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