Indicators held steady this week, posting only slight declines as feeders and restockers competed for the top lightweight cattle in the south.
Indicators this week tracked sideways as yardings inched a little bit higher this week to 68k head. National cattle slaughter continues to hover at the peak with last week’s count eclipsing 156k head. Per MLA saleyard reports, processors remain active but not willing to push prices higher for finished steers and cull cows in Roma. To Dalby and the competition was strongest amongst feeders and restockers for yearlings. Wagga and Dubbo saw lighter cattle dominate the market and strong bids from feedlotters for the pick of the lighter weights.
The Eastern Young Cattle Indicator (EYCI) lost 1¢ to 853¢/kg cwt, and the Western Young Cattle Indicator (WYCI) corrected 42¢ lower to 743¢/kg cwt. Heavy steers and processor cows averaged a 1-4¢ loss this week.
Queensland and Northern NSW winter crops have benefitted from consistent rainfall and relatively mild temperatures this winter, so with plentiful forage and a favourable outlook, the likelihood of producers in the north taking stock all the way through looks more likely. This is no doubt weighing on the minds of feeders and restockers looking to source more stock. The biggest gains this week were with feeder heifers, which improved 17¢ to 414¢/kg cwt. Given the recent strength of pricing, buyers are looking for some value, which has dragged up heifers compared to steers this week.
This week on Mecardo, Jamie-Lee Oldfield had a look into live export demand for Australian cattle (Read more here). Indonesia remains the largest live export market, but is currently tracking at decade-low levels as domestic demand continues to throw a spanner in the works for the live export trade. Southern feeders and processors looking further afield to fill supply, and plenty of grass in the north could drag numbers out of the export trade. This would likely see total live cattle exports fall short of forecasted levels.
Next week
Appetite for yearlings back to feed will remain high the next few weeks, but the days on feed deadline before Christmas shutdowns are fast approaching.
The latest Beef Producer Intentions Survey (BPIS), undertaken by Meat & Livestock Australia with results released this week, shows overall positivity in the industry, with
Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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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.
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.
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.
Heifers catching up
Indicators this week tracked sideways as yardings inched a little bit higher this week to 68k head. National cattle slaughter continues to hover at the peak with last week’s count eclipsing 156k head. Per MLA saleyard reports, processors remain active but not willing to push prices higher for finished steers and cull cows in Roma. To Dalby and the competition was strongest amongst feeders and restockers for yearlings. Wagga and Dubbo saw lighter cattle dominate the market and strong bids from feedlotters for the pick of the lighter weights.
The Eastern Young Cattle Indicator (EYCI) lost 1¢ to 853¢/kg cwt, and the Western Young Cattle Indicator (WYCI) corrected 42¢ lower to 743¢/kg cwt. Heavy steers and processor cows averaged a 1-4¢ loss this week.
Queensland and Northern NSW winter crops have benefitted from consistent rainfall and relatively mild temperatures this winter, so with plentiful forage and a favourable outlook, the likelihood of producers in the north taking stock all the way through looks more likely. This is no doubt weighing on the minds of feeders and restockers looking to source more stock. The biggest gains this week were with feeder heifers, which improved 17¢ to 414¢/kg cwt. Given the recent strength of pricing, buyers are looking for some value, which has dragged up heifers compared to steers this week.
This week on Mecardo, Jamie-Lee Oldfield had a look into live export demand for Australian cattle (Read more here). Indonesia remains the largest live export market, but is currently tracking at decade-low levels as domestic demand continues to throw a spanner in the works for the live export trade. Southern feeders and processors looking further afield to fill supply, and plenty of grass in the north could drag numbers out of the export trade. This would likely see total live cattle exports fall short of forecasted levels.
Next week
Appetite for yearlings back to feed will remain high the next few weeks, but the days on feed deadline before Christmas shutdowns are fast approaching.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
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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.
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.
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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.