The Eastern Young Cattle Indicator broke the 1,100 cent mark this week, notching up yet another record. Back-to-back good seasonal conditions, with more rain on the cards, is fuelling producer confidence and pushing cattle prices higher and higher. Prices have also improved in the West with the West Australian Young Cattle Indicator sitting at 41 cent premium over the EYCI.
The Australian Bureau of Statistics released their Q3 cattle herd figures this week, confirming the Aussie herd rebuild phase has kicked up a notch. Mecardo looked more closely at the figures and it appears confidence in QLD is especially strong, as they hold onto more of their females (view article here). With plenty of cattle staying put in the paddocks, there are fewer heading to the yards, further driving up prices.
Yardings dropped by around another 10,000 head for the week ending 12th November 2021 for the second week in a row. Just 33,036 head went to the saleyards last week, 23% lower than the week prior and 35% lower than this time last year.
Slaughter levels dropped again with just 90,182 head of cattle slaughtered last week, 4% lower than the week prior and 18% lower than this time last year.
The perfect storm of tight supply + good seasonal outlook + strongnternational demand outlook pushed the EYCI to a record 1,102¢/kg cwt earlier in the week before dropping marginally to finish this week at 1095¢/kg cwt, 32% higher than this time last year.
The top four Saleyards contributing to the 7-day rolling average reported by MLA were Roma Store (14%), Dubbo (13%), Gunnedah( 9%) and TRLX Tamworth (5.5%). It was Roma Store that helped push the EYCI into record territory again. Average prices there were a whopping 1,230¢/kg cwt, lifting 7.5% on the week prior or by 93 cents.
On the National Indicators front it was again the Restocker Yearling Steers leading the charge, up 10.5¢ (5%) on last week and 190¢ on this time last year. The Heavy Steer & Medium Cow Indicators also lifted 6.5 & 8.5¢ respectively to finish at 466 & 704¢/kg cwt. The National Cow Indicator is up 31% on this time last year, co-incidentally exactly the same increase in the 90CL price over the same period. Processor (541¢/kg cwt) and Feeder Steers(544¢/kg cwt) both lifted 1 cent on last week while Vealer & Medium Steers both fell, 5 & 18 cents respectively, to finish the week at 543 & 466¢/kg cwt.
Reports from US Steiner Consulting Group of US importers struggling to secure beef orders due to extremely tight supply coming out of Australia, drove the 90CL price up nearly 5% on the week prior to where it sits now at 854¢/kg swt in AUD terms.
The week ahead….
With plenty of rain about, supply will continue to be limited, to the frustration of buyers. While we don’t know whether prices can push any higher,producers should be confident that prices won’t fall drastically in the short term and thus should be well rewarded when they decide to sell.
The long-predicted slowdown in US beef production has seemingly come into play this year, and Australian beef is filling some of the production gaps. Total
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.
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.
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.
EYCI & WYCI above 1,100¢
The Australian Bureau of Statistics released their Q3 cattle herd figures this week, confirming the Aussie herd rebuild phase has kicked up a notch. Mecardo looked more closely at the figures and it appears confidence in QLD is especially strong, as they hold onto more of their females (view article here). With plenty of cattle staying put in the paddocks, there are fewer heading to the yards, further driving up prices.
Yardings dropped by around another 10,000 head for the week ending 12th November 2021 for the second week in a row. Just 33,036 head went to the saleyards last week, 23% lower than the week prior and 35% lower than this time last year.
Slaughter levels dropped again with just 90,182 head of cattle slaughtered last week, 4% lower than the week prior and 18% lower than this time last year.
The perfect storm of tight supply + good seasonal outlook + strongnternational demand outlook pushed the EYCI to a record 1,102¢/kg cwt earlier in the week before dropping marginally to finish this week at 1095¢/kg cwt, 32% higher than this time last year.
The top four Saleyards contributing to the 7-day rolling average reported by MLA were Roma Store (14%), Dubbo (13%), Gunnedah( 9%) and TRLX Tamworth (5.5%). It was Roma Store that helped push the EYCI into record territory again. Average prices there were a whopping 1,230¢/kg cwt, lifting 7.5% on the week prior or by 93 cents.
On the National Indicators front it was again the Restocker Yearling Steers leading the charge, up 10.5¢ (5%) on last week and 190¢ on this time last year. The Heavy Steer & Medium Cow Indicators also lifted 6.5 & 8.5¢ respectively to finish at 466 & 704¢/kg cwt. The National Cow Indicator is up 31% on this time last year, co-incidentally exactly the same increase in the 90CL price over the same period. Processor (541¢/kg cwt) and Feeder Steers(544¢/kg cwt) both lifted 1 cent on last week while Vealer & Medium Steers both fell, 5 & 18 cents respectively, to finish the week at 543 & 466¢/kg cwt.
Reports from US Steiner Consulting Group of US importers struggling to secure beef orders due to extremely tight supply coming out of Australia, drove the 90CL price up nearly 5% on the week prior to where it sits now at 854¢/kg swt in AUD terms.
The week ahead….
With plenty of rain about, supply will continue to be limited, to the frustration of buyers. While we don’t know whether prices can push any higher,producers should be confident that prices won’t fall drastically in the short term and thus should be well rewarded when they decide to sell.
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?
Weather whiplash creates erratic cattle market
Roads and paddocks have begun to dry out allowing the backlog of cattle from soaked areas of Queensland and New South Wales to hit the
US herd build provides a boost
The long-predicted slowdown in US beef production has seemingly come into play this year, and Australian beef is filling some of the production gaps. Total
All hands on deck clearing cattle
Young cattle prices have bounced back after the recent rain, improving 28ȼ to 626ȼ/kg cwt. While rain helps limit the flow of cattle at one
The recipe for higher cattle prices
The best recipe for stronger cattle prices is strong beef export values, and rain. The last week has delivered on both fronts, with major livestock
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.
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.
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.