Tighter supply saw prices improve across the board this week. Notably, processors shifted their attention to cows, with heavy cows, in particular acquiring solid price improvements.
The young cattle market in the east picked up an additional
22¢ on the week to see the EYCI at 603¢/kg cwt. In the West, young cattle have
held onto their ground from the recent rally, ending the week just 1¢ softer at
575¢/kg cwt. Feeder buyers continue to pay a premium for young cattle compared
to restockers and processors. On average feeders paid 617¢/kg, while restockers
paid 592¢ and processors at 590¢ this week for young cattle.
Cow prices took off this week, mainly driven by results in
QLD and NSW. The National Processor Cow Indicator gained 28¢ (13%) over the
week to 244¢/kg lwt. This is the highest we’ve seen the indicator since mid-February.
Reports of an expected shortfall in traded global lean beef in Q3 are driving
prices of Australian 90CL trim beef imported by the US back in an upward trend.
With rising capacity in Australian meatworks, processors may be moving to take
advantage of the predicted boost to ground beef demand.
Rain fell in eastern Queensland and northern NSW this week
which slowed the flow of cattle from paddocks and gave the northern feeder
market a boost. Northern feeder steer prices crept higher over the week,
gaining 5 to 10¢ at the saleyard and direct to the feedlot.
While saleyard throughput was down this week, which drove
prices up at many saleyards across the country, processor capacity continues to
expand. 143,705 head of cattle were processed last week across the country
according to MLA reports, which is a new weekly high since early 2020.
The week ahead….
Light falls look destined for much of the east next week, except for the far north and eastern Queensland. The longer-range forecast is at this point tipping some wet weeks ahead in key cattle areas of southern Queensland and northern NSW which if delivered should provide some more confidence and bring with it a price lift.
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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Cows command high prices on a tight beef outlook
The young cattle market in the east picked up an additional 22¢ on the week to see the EYCI at 603¢/kg cwt. In the West, young cattle have held onto their ground from the recent rally, ending the week just 1¢ softer at 575¢/kg cwt. Feeder buyers continue to pay a premium for young cattle compared to restockers and processors. On average feeders paid 617¢/kg, while restockers paid 592¢ and processors at 590¢ this week for young cattle.
Cow prices took off this week, mainly driven by results in QLD and NSW. The National Processor Cow Indicator gained 28¢ (13%) over the week to 244¢/kg lwt. This is the highest we’ve seen the indicator since mid-February. Reports of an expected shortfall in traded global lean beef in Q3 are driving prices of Australian 90CL trim beef imported by the US back in an upward trend. With rising capacity in Australian meatworks, processors may be moving to take advantage of the predicted boost to ground beef demand.
Rain fell in eastern Queensland and northern NSW this week which slowed the flow of cattle from paddocks and gave the northern feeder market a boost. Northern feeder steer prices crept higher over the week, gaining 5 to 10¢ at the saleyard and direct to the feedlot.
While saleyard throughput was down this week, which drove prices up at many saleyards across the country, processor capacity continues to expand. 143,705 head of cattle were processed last week across the country according to MLA reports, which is a new weekly high since early 2020.
The week ahead….
Light falls look destined for much of the east next week, except for the far north and eastern Queensland. The longer-range forecast is at this point tipping some wet weeks ahead in key cattle areas of southern Queensland and northern NSW which if delivered should provide some more confidence and bring with it a price lift.
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Data sources: MLA, BOM, Mecardo, Steiner Consulting Group, 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
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.