cattle_flot_001

Cattle prices held fairly firm this week as yardings fell below the five-year-average for the first five-day week since February. Latest slaughter data was back up to equal to its largest numbers for the year after a short week, with processor demand not slowing down at all as mid-winter approached.

The Eastern Young Cattle Indicator eased slightly to 704¢/kg carcass weight, as nearly 40% of the throughput came out of Roma, Queensland, store sale, which averaged 701¢/kg. The high performers for the EYCI was central NSW, with Carcoar and Dubbo averaging 800¢/kg and 750¢/kg respectively, but both having less than 1000 head eligible for the indicator. Comparatively, the ECYI is trading about 20% stronger than this time last year, and above the 10-year-average price, but still lags 10% below the five-year price guide.

Online sales in QLD and NSW were the two biggest contributors to the National Young Cattle Price after Roma, which held firm at 380¢/kg liveweight. NSW average about 40¢/kg more than QLD with online sales. Yearling steers made up 40% of the eligible cattle and averaged 400¢/kg. The Restocker Yearling Steer Indicator gained 10¢/kg to land at 394¢/kg, with an increase of 2300 head compared to last week.

Feeder steers average 390¢/kg, down 8¢/kg from last week, and a Feeder Heifer Indicator was added to Meat & Livestock Australia’s data this week. It takes in both grown and yearling heifers that are purchased by lotfeeders out of the saleyards, and currently sits at 334¢/kg. Heavy steers were the only category to experience significant downward pressure this week, dropping more than 23¢/kg to close the week at 348¢/kg, back to month-ago levels.

Cows continued their climb this week, up another 8¢/kg to 291¢/kg, back to where it was at the start of May. They are now trading at 20% above the 10-year-average, supported by export demand and a 90CL price which keeps heading north. 

The week ahead….

With processor cow indicator eligible numbers contracting by more than 2000 head this week, and yardings dropping, we could see slaughter numbers follow suit. However, with slaughter numbers at historic highs, it will really depend on if we see a significant downturn in supply to find out if there is much upside left for processor cattle in the winter.

Have any questions or comments?

We love to hear from you!
Print This Post

Click on graph to expand

Click on graph to expand

Data sources: MLA, Mecardo

Have any questions or comments?

We love to hear from you!

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

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
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.

Photo of a farmer surrounded by Merino sheep in dusty yards
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. 

Image of harvested grain pouring into a chaser bin
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.