cattle_flot_001

The toll of supply continues to weigh on cattle values at auctions across the country. While conditions may be good in much of the northeast, when it’s time to go, the cattle shall go. Feedlots have got their pick of cattle at ideal weights coming out of northern NSW and southern QLD.

The rain event in Queensland will be positive for summer pasture growth and allow graziers to hold onto cattle not yet at weight. This should be positive for the market, in that we’re unlikely to see surges in turnoff from these parts of Queensland in the near term but a more measured flow. Feedlots in the north are feeding back the message that they are well supplied for now.

The northern feeder cattle index reported by Argus slipped another 4¢ this week. Saleyard reports out of Dalby and Roma noted a good attendance of buyers and a market that was generally slightly stronger across categories though.

For much of Victoria and southern and central NSW though, producers are still waiting for a good rain to appear on the forecast. Almost 50% more cattle have passed through saleyards in Victoria this year so far compared to the same time last year and throughput is well exceeding average levels. Buyers only have to head south to fill their needs, although cattle of good weight aren’t as well supplied from these regions.

In terms of price, the Eastern Young Cattle Indicator (EYCI) moved 5¢ lower this week. Sitting at 636¢/kg cwt, the EYCI is 5% lower than the same time last year. Processor cow prices firmed in QLD, NSW, and WA over the week while declining in the other southern states. At 267¢/kg lwt, the National Processor Cow Indicator is slightly higher than this time last year.

Next week

Tariffs are the talk of the town at the moment and clearly, the situation is fluid, with announcements seeming to change by the time I get to my coffee in the morning. We will watch this space of course, but for now, it’s local supply that’s dictating cattle prices. The forecast shows a chance of rain for eastern areas of the south in the week ahead, as well as significant falls in the north. It’s the south where it will be needed to move the market much higher.

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Data sources: Mecardo, MLA, BOM

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