Northern bos indicus cattle in yard

The EYCI has continued to show stagnation, staying on par with last week; most likely suppressed by a recovery in yarding’s, despite the support of continued low slaughter. The national indicators were a mixed bag, with only vealers and restockers winners; with the rest backtracking. As young cattle of any description are highly sought after, and in short supply; it’s no surprise that vealers have been steadily rising for months now.

Yardings lifted 20% week on week, lead by a strong 37% lift in QLD; backed up by a substantial 36% increase in VIC.

A total of 47,137 head were yarded on the east coast for the week ending 26th February 2021, which was 7,819 more than the prior week. Numbers of cattle on offer are now almost on par with the same time last year, but are still 20% down on the 5-year average.

Slaughter crawled up another 1%, with QLD kills rising 8%, offset by an 11% decline in NSW

For the week ending 26th February, 2021, 100,875 head were slaughtered, which was up a very marginal 1,405 head from the prior week.

The EYCI has continued on a slovenly path, remaining stationary this week at 858c/kg cwt. With higher still yardings probably in sight next week; it might be a while till we see some more action on this front.

The National Indicator categories were mostly red ink this week, with medium steers falling the most, while vealers continued their unsurprising ascent, and restockers made a modest gain.

Vealer steers were the standout, putting on 14¢ (3%) to reach 506¢/kg lwt, while restockers added 3¢ (<1%) to finish the week at 521¢/kg lwt.

On the less lucky side, medium steers shed 14¢ (3%) to close at 389¢/kg lwt; while heavy steers also dipped 3¢ (<1%) to settle at 370¢/kg lwt.

Feeder and processor steers respectively gave up 8¢ (2%) and 2¢ (<1%) to end the week at 438¢/kg lwt and 445¢/kg lwt.

Medium cows shed 3¢ (1%) to finish up at 284¢/kg lwt.

The Aussie dollar appreciated a smidgen, to rise to 0.7773US. Inflation concerns are rising in the US, with Biden’s 1.9 trillion-dollar fiscal stimulus package starting to be seen as overkill, and the prices paid index already suggesting that the US is already running at 3% inflation.

90CL fell back 6¢ (<1%) last week; but was supported by continued very limited supply of Australian product into the US market, and a larger than expected decline in US cow slaughter, which is down 21% from last year.

The week ahead….

The rainfall situation is looking considerably more generous over the coming week, with SE QLD and Northern NSW set to receive a solid 25-50mm, though VIC and northern QLD will be comparatively parched. With yarding’s finally picking up last week, we might see another increase coming, which may weigh on prices going forward, despite stubbornly low slaughter. On the bright side; cattle are clearly still scarce, and demand relatively strong, so another sideways week coming up is probably on the cards.

Have any questions or comments?

We love to hear from you!
Print This Post

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: MLA, Mecardo, BOM

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!

Cow trend kicks up in winter

Producers in many areas are eagerly awaiting rain predicted for this coming weekend, as a dry autumn starts to bite into feed on hand. The

Read More »
Northern bos indicus cattle in yard

Someone let the bulls out

It could’ve been a post Beef Week high, or an adjustment in demand but this week’s market exuded a higher level of confidence. Sellers were

Read More »

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
Research: Analysis of the Australian sheep flock

In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making. 

Image of harvested grain pouring into a chaser bin

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.