Whilst a week-on-week increase in supply is not a surprise as the trade returns from the break, it's clear that the resurgence of restocker demand has motivated auction participation by those offloading cattle.
East Coast yardings this week per the NLRS were
reported at 56,836 head, which is 46% higher than the 5-year average for the
same sale week. Buyers were likely
relieved there were more cattle to choose from as this additional supply did
not apply downward pressure on most market indicators on a national basis.
Young cattle were in strong demand from
restockers and feeders as the Eastern Young Cattle Indicator (EYCI) improved
4.7% week on week to 616 ȼ/kg cwt. Restockers were in force across the major
yards again but the instigators of bidding this week were the feeder buyers as
the national feeder indicator improved 18ȼ to 325ȼ/kg lwt.
This week’s cattle analysis by Nick Symon (read
here) focussed on the buyer breakdown of young cattle at the yards and how
the impact of rain has allowed for prices to trend upward despite
record-breaking supply. For prices to
continue on their upward trajectory, however, we expect some more support from
overseas demand will be needed.
Processor demand for cows was evident this
week as the number of cows bought by processors nationally this week at the
yards more than doubled week on week to 8518 head. This figure is the highest weekly head count for
the month of January since 2019. The national processor cow indicator improved
despite this, up 21 ȼ/kg to 250 ȼ/kg lwt (463 ȼ/kg cwt). Furthermore reports in
Wagga saw “prolonged bidding duels” for lighter-weight cows.
Next week
Despite recent exchange rate appreciation in Q4, 90CL pricing is still elevated. US buyers purchasing hamburger beef in 2023 was a significant support mechanism, but continued demand for 90CL beef (and indirectly the cull cows that are used for it) will be necessary to keep the good times of 2024 rolling.
Processor demand for this type of cattle is an important indicator that the export prospects look strong in the medium term which should help to enhance confidence for other cattle buyers in the supply chain.
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
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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.
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Feeders enter the fray
Next week
Despite recent exchange rate appreciation in Q4, 90CL pricing is still elevated. US buyers purchasing hamburger beef in 2023 was a significant support mechanism, but continued demand for 90CL beef (and indirectly the cull cows that are used for it) will be necessary to keep the good times of 2024 rolling.
Processor demand for this type of cattle is an important indicator that the export prospects look strong in the medium term which should help to enhance confidence for other cattle buyers in the supply chain.
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Data sources: MLA, Mecardo
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Export buyers out of office
With the nation stopping yesterday to commemorate ANZAC Day, Thursday livestock sales did not take place. As a result, this week saw a decrease in
Cattle price volatility lower as supply and demand find balance
Cattle market volatility has waned recently. The wild swings of 2023 saw prices move up to 70% across the course of two months. Thus far
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
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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.
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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.