Yardings compared to last year were
slightly down as saleyards reopen for 2024. Preliminary data from the MLA show
a total of 25,606 head, down 9% on the 2nd week of January in 2023. When
taking into account last month’s December yardings which were 120% above the
previous year of December 2022, it shows that there is still a lot of supply
coming from the paddocks around the country.
The East Coast had a very wet start to the
year, continuing from high December totals. Parts of Victoria flooded and
received monthly averages or more in 24 hours. This helped lift cattle prices
as feed concerns through the drier summer months continue to erode, and overall
confidence in the market continues to rise.
The Eastern Young Cattle Indicator built on
its price climb in December finishing the week at 589c/kg cwt. Supply was down 3%
on this time last year with 7630 head moving through the yards (not everyone
has returned from the break). Roma had the largest offering and helped pull the
price up, averaging 659 c/kg cwt, which was 12% (71 c/kg) above the indicator. Saleyard
reports indicate the usual suspects and other active buyers were present,
helping to increase the competition.
Processor cows trended the same as the
ECYI, up 3% on price highs of December finishing the week at 227 c/kg lwt.
Wagga had the highest yarding with just over 1000 head being sold. At Mt.
Gambier reports stated that “all buyers coming forward” helped push their
average 9% above the indicator.
The Western Young Cattle Indicator also
opened the year higher than when it closed last year, finishing the week at 499
c/kg cwt up 12% (50c/kg) on this time last month. It was the 12th
All black special weaner sale which drew a “large gallery of buyers” according
to the sale report. This is despite the West hardly receiving any rain with the
December total being 41% below the average.
Confident start to the year
Next week
Expect to see an increase in activity as more buyers and sellers enter the market after returning from their Christmas break. Confidence in the market is high off the back of large amounts of rain on the east coast and the strong start to the new year building on from the price rallies late last year. Confidence in the market and demand side fundamentals could lead to further price rises in the short term.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Mecardo
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