Cows in a paddock

Dry conditions pushed some producers into the market, causing a lift in supply. The movements were minor compared to those large swings seen earlier in the year. Some indicators, despite the increased supply, were still able to make gains in value, thanks to strong demand still present in the market

The demand for processor cows appeared to increase this week, as off the back of a 41% lift in volume, prices also climbed 1.2% to close the week just over the $3/kg tide mark at 301¢/kg. Shepparton topped the market in value terms with an 8% premium on the national indicator. Regarding volume, it was Wagga and Wodonga that topped the charts, with a 9% share each. Wagga in its saleyard report said cows were the sales standout performers.

The Eastern Young Cattle Indicator dropped in value by 2% following a 7% increase in volume for the selling week, the indicator finishing the week at 653¢/kg. Roma had the largest volume contribution of 27%. Their sale yard report said that, despite a full field of buyers, they were selective in their bidding and as a result the market couldn’t maintain last week’s levels.

In the West, the young cattle fell by slightly more to close the week down 4%, to 536¢/kg. Supply weighed on prices, with yardings up 15% giving the buyers more to choose from. Mount Barker had the majority share of the indicator, and its market report mentions the lighter weights being down in demand.

Restockers heifers outperformed their male counterparts, despite still trading at a discount. The Restocker heifer indicator increased value by 1%, whilst the restocker steer fell by 1%. Heifers closed the week at 309¢/kg and the steers at 383¢/kg. The yardings for both indicators were up week on week, heifers rising by 58% and steers by 13%.

Initial yarding data reported by the NRLS show an increase of 6% week on week, with the total amount of throughput at 76.3k head. As mentioned above, the increase is driven from producers having growing feed supply concerns with dry conditions experienced around the country.

Total slaughter for cattle for the week prior was down by 4% on the week before that, this was mainly driven by a reduction in Queensland, which was down 7% week on week and accounts for 51% of the nation’s slaughter volume. Other states to decrease were Vic and WA, down 3% and 10%, respectively.

Next week

The BOM hasn’t forecast any additional rain for the dryer cattle regions. no rain relief means the supply of cattle through the market will continue as producers are pushed to sell.

Have any questions or comments?

We love to hear from you!

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: Mecardo, MLA, BOM

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.