The cattle market gained momentum this week, as plenty of active buyers drove prices upward and allowed the market to recover some recently lost ground. Across most categories, prices increased by 15-20¢ compared to last week.
According to preliminary figures from MLA, 58,524 head of
cattle were yarded across NLRS-reported saleyards. Despite shorter working
weeks, this figure is at the lower end of supply levels seen over the past few
months. Throughput was particularly tight in NSW. With Beef Week set to start
next week in Rockhampton, numbers are expected to be even lighter in the north.
However, a seasonal increase in supply is anticipated in the following weeks of
May, with levels likely to stay elevated throughout the winter.
The Eastern Young Cattle Indicator (EYCI) rose by 20¢ over
the week, closing at 604¢/kg cwt. Dubbo reported an average young cattle price of
640¢/kg, making it the strongest of the major markets this week. Notable active
bidding from feedlots and backgrounders was observed in Wagga, while restocker
activity was muted. With widespread rain across much of NSW this week,
increased activity from restockers is anticipated.
In the north, Angus feeder cattle prices saw improvements,
with those weighing over 400kg becoming increasingly scarce. Argus reports that
many feedlots are facing procurement challenges, with supply likely to
remain tight through winter.
Cow prices were on the rebound, with the national indicator up
17¢/kg to 216¢/kg lwt. This was despite a stronger yarding compared to the week
prior. There has been a general rising trend in cow prices in the west in the
last two months, and this week a slight improvement saw the WA processor cow
indicator at 176¢/kg cwt. Dry conditions in the west have been driving strong
turnoff levels and the lofty discount to the eastern market. Some patches of WA
received 15-20mm in the last week, but much more is needed to turn around the
season.
US imported 90CL grinding beef prices have hit the pause
button after rallying strongly through April. Near-term fed beef supply in the
US is higher than previously feared according to Steiner, which has allowed
prices to level at least for a while. Long-term prices are expected to stay
well supported and increase, as US cow slaughter declines in 2024 and 2025.
Next week
A wet week expected across inland NSW can only be positive for the market. While it may not significantly limit turnoff before the winter chill kicks in, it will provide a boost to confidence in the seasonal outlook and open the door to trading opportunities as we reported in this week’s analysis.
Recent rain which has sent young cattle markets into overdrive have overshadowed some of the developing headwinds, especially for finished cattle. The latest beef export
The latest Beef Producer Intentions Survey results were released by Meat and Livestock Australia earlier this month, with improving cattle prices the main driver behind
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Cattle market pitches up
According to preliminary figures from MLA, 58,524 head of cattle were yarded across NLRS-reported saleyards. Despite shorter working weeks, this figure is at the lower end of supply levels seen over the past few months. Throughput was particularly tight in NSW. With Beef Week set to start next week in Rockhampton, numbers are expected to be even lighter in the north. However, a seasonal increase in supply is anticipated in the following weeks of May, with levels likely to stay elevated throughout the winter.
The Eastern Young Cattle Indicator (EYCI) rose by 20¢ over the week, closing at 604¢/kg cwt. Dubbo reported an average young cattle price of 640¢/kg, making it the strongest of the major markets this week. Notable active bidding from feedlots and backgrounders was observed in Wagga, while restocker activity was muted. With widespread rain across much of NSW this week, increased activity from restockers is anticipated.
In the north, Angus feeder cattle prices saw improvements, with those weighing over 400kg becoming increasingly scarce. Argus reports that many feedlots are facing procurement challenges, with supply likely to remain tight through winter.
Cow prices were on the rebound, with the national indicator up 17¢/kg to 216¢/kg lwt. This was despite a stronger yarding compared to the week prior. There has been a general rising trend in cow prices in the west in the last two months, and this week a slight improvement saw the WA processor cow indicator at 176¢/kg cwt. Dry conditions in the west have been driving strong turnoff levels and the lofty discount to the eastern market. Some patches of WA received 15-20mm in the last week, but much more is needed to turn around the season.
US imported 90CL grinding beef prices have hit the pause button after rallying strongly through April. Near-term fed beef supply in the US is higher than previously feared according to Steiner, which has allowed prices to level at least for a while. Long-term prices are expected to stay well supported and increase, as US cow slaughter declines in 2024 and 2025.
Next week
A wet week expected across inland NSW can only be positive for the market. While it may not significantly limit turnoff before the winter chill kicks in, it will provide a boost to confidence in the seasonal outlook and open the door to trading opportunities as we reported in this week’s analysis.
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Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Argus, Refinitiv, Mecardo
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The latest Beef Producer Intentions Survey results were released by Meat and Livestock Australia earlier this month, with improving cattle prices the main driver behind
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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.
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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.