Yardings continued on their downward trajectory last week, dipping another 13%, to bring the total reduction in offerings to 22% since the sharp recovery we saw back in mid-April.
Most of the decline emanated from QLD and NSW, which respectively fell back 21% and 10%.
A total of 40,9886 head were yarded on the east coast for the week ending 7th May 2021, down 6,051 head from the week prior.
Slaughter also slid again for the second week in a row; albeit at a slower pace; backing off 2% from the prior week.
For the week ending 7th May, 2021, 92,461 head were slaughtered, down 1,472 head on the week prior. VIC slaughter took the largest tumble, retreating 9%, with SA dipping 33% on the prior week, while QLD slaughter actually picked up in contrast, indicating that the supply/demand balance has been tightening in QLD recently.
The EYCI continued its’ positive rally, breaching the 900¢ barrier again as early as Tuesday, and pushing back up to close the week at 903¢/kg cwt. Numbers of eligible cattle are down around 20% from prior weeks to under 12,000 head, with Roma, Dalby and Wagga leading the charge. Casino, Singleton, and Armidale clocked average prices over the 900¢kg, with Scone the standout, at 1005¢/kg, where sales were 80% vealers. In contrast, the Roma, Dalby & wagga yards are almost exclusively yearlings, hence the price difference.
On the West coast, the WYCI collapsed by 56¢ from its high last week of 1013¢/kg to close at 956¢/kg cwt for the week. The cause of the fall was clear- thin numbers, and a switch away from a stark majority of vealers last week, to in excess of 50% lower value yearlings making up the index over this week.
The national category indicators were a tale of two cities, with the lighter restocker and vealer categories lifting, respectively 5¢ (1%) and 9¢ (2%) to close at 550¢/kg lwt and 512¢/kg. Medium steers also advanced 7¢ (2%) to 403¢/kg.
In contrast, processor, feeder, and heavy steers fell, 1-2% to close at 461¢/kg, 403¢/kg and 382¢/kg lwt. The exception was medium cows, which rose 4¢(1%) to 285¢/kg lwt.
The Aussie dollar backtracked 1.4% on the prior week to finish the week at 0.773USD. US inflation numbers have been higher than expected, and equities markets have rallied recently. Iron ore futures prices dipping 9% cast a softer shadow upon the outlook for the Australian dollar.
The 90CL frozen cow price continued its steady journey skyward, powering up 15¢ (2%) to 712c/kg cwt. Steiner reports that US manufacturers are struggling to secure grinding beef, especially in light of overall US beef imports being down 8%, with the Australian portion down 48%, and US beef exports hitting record levels. Wholesale beef prices in the US have risen more than 36% on aggregate since March.
EYCI Rallies above 900 again
Yardings continued on their downward trajectory last week, dipping another 13%, to bring the total reduction in offerings to 22% since the sharp recovery we saw back in mid-April.
Most of the decline emanated from QLD and NSW, which respectively fell back 21% and 10%.
A total of 40,9886 head were yarded on the east coast for the week ending 7th May 2021, down 6,051 head from the week prior.
Slaughter also slid again for the second week in a row; albeit at a slower pace; backing off 2% from the prior week.
For the week ending 7th May, 2021, 92,461 head were slaughtered, down 1,472 head on the week prior. VIC slaughter took the largest tumble, retreating 9%, with SA dipping 33% on the prior week, while QLD slaughter actually picked up in contrast, indicating that the supply/demand balance has been tightening in QLD recently.
The EYCI continued its’ positive rally, breaching the 900¢ barrier again as early as Tuesday, and pushing back up to close the week at 903¢/kg cwt. Numbers of eligible cattle are down around 20% from prior weeks to under 12,000 head, with Roma, Dalby and Wagga leading the charge. Casino, Singleton, and Armidale clocked average prices over the 900¢kg, with Scone the standout, at 1005¢/kg, where sales were 80% vealers. In contrast, the Roma, Dalby & wagga yards are almost exclusively yearlings, hence the price difference.
On the West coast, the WYCI collapsed by 56¢ from its high last week of 1013¢/kg to close at 956¢/kg cwt for the week. The cause of the fall was clear- thin numbers, and a switch away from a stark majority of vealers last week, to in excess of 50% lower value yearlings making up the index over this week.
The national category indicators were a tale of two cities, with the lighter restocker and vealer categories lifting, respectively 5¢ (1%) and 9¢ (2%) to close at 550¢/kg lwt and 512¢/kg. Medium steers also advanced 7¢ (2%) to 403¢/kg.
In contrast, processor, feeder, and heavy steers fell, 1-2% to close at 461¢/kg, 403¢/kg and 382¢/kg lwt. The exception was medium cows, which rose 4¢(1%) to 285¢/kg lwt.
The Aussie dollar backtracked 1.4% on the prior week to finish the week at 0.773USD. US inflation numbers have been higher than expected, and equities markets have rallied recently. Iron ore futures prices dipping 9% cast a softer shadow upon the outlook for the Australian dollar.
The 90CL frozen cow price continued its steady journey skyward, powering up 15¢ (2%) to 712c/kg cwt. Steiner reports that US manufacturers are struggling to secure grinding beef, especially in light of overall US beef imports being down 8%, with the Australian portion down 48%, and US beef exports hitting record levels. Wholesale beef prices in the US have risen more than 36% on aggregate since March.
The week ahead….
The rising EYCI, and signs of a trend towards increasing tightness in the supply demand balance in QLD, coupled with continued strong restocker interest in young cattle suggest that next week could see another solid does of positivity going forward. The latest 3-month rainfall outlook from the BOM also shows a pleasing 65-75% chance of median rainfall being exceeded over a good proportion of QLD and NSW, which is bound to stoke confidence about the prospects of the future season.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo, BOM
Categories
Have any questions or comments?
Northern needs support for restocker returns
The market was only headed in one direction this week, and that was down. Last week ended up being a record for yardings, so numbers
Dry May, but there is cause for optimism.
There are a myriad of weather forecasts out there, and most farmers will know you can usually find one with some rain on it. At
Market loses ground as autumn break still missing
The week started with a record number of cattle yarded at Wagga Wagga, with 8731 put through the ring on Monday. This followed on from
Slaughter set to swell?
Winter is right around the corner, and historically, we start to see an increase in weekly cattle slaughter figures from here on out. Domestic seasonal
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
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.
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.