cattle behind fence in a row

Ex-tropical cyclone Alfred has contributed to significant disruption throughout the cattle supply chain, as processors, saleyards and producers were all impacted. Consequently, this week saw a significant decrease in yardings, applying positive pressure on prices.

Initial yardings data from the NLRS show a reduction of 42% week-on-week, down to 44k head. Yardings fell for every single indicator reported by the MLA. The cyclone, combined with the public holiday in Victoria and Tasmania, saw some sales not take place.

The Eastern Young Cattle Indicator climbed 3% to close the selling week at 665¢/kg, with yardings falling by 34%. Roma, Wagga, and Dubbo were the top three largest contributors to the indicator for the week, accounting for over half the volume. Their saleyard reports speak to strong demand with the return of some buyers following absences.

The Processor Cow Indicator gained 2%, with yardings dropping by half from the volume seen last week. Mount Gambier had the highest average sell price for the week, selling at a 9% premium to the indicator. Its saleyard report highlighted very tight supply causing more competition amongst buyers.

Slaughter for the week prior was down by 9.3% as a result of precautionary shutdowns ahead of Cyclone Alfred’s arrival. Queensland volume was back by 18% compared to the week before. Despite this large reduction week-on-week, compared to the same week over the last five years, it still represented an increase of 18% on the average.

The week ahead….

Some rain is forecast for the majority of the nation, especially along the east coast. This may continue to see lower volumes as producers wait another week to assess their feed supply outlooks. Closed processing plants in Queensland will be back online, supporting demand.

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Data sources: Mecardo, MLA, BOM

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