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.
With rain falling in parts of southern Australia in recent days, and more set to follow, there could be increased opportunity for restocker movement in
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Cow price keeps on climbing
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.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
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Have any questions or comments?
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Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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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.