East Coast slaughter dropped 21% last week compared to the prior week, coming in at 74,146 head. Missing from the mix due to Monday’s holiday were Dubbo, Wagga, and Tamworth, among others. This is 22% below the figure achieved at the same time last year. However, bear in mind that easter landed two weeks earlier in 2021 so we aren’t comparing apples with apples there.
The easter four day week took its toll on yardings as expected, with numbers down 36% on the prior week to 26,773 head. That’s 48% below the same time last year, but again, with easter positioned differently in 2020, it’s not directly comparable. Activity on AuctionsPlus was also lacklustre, with yardings down 45% to 6,798 head.
Looking forward, MLA’s Jenny Lim reports that Sales that will be skipped over due to Anzac day next week include Mortlake, Dubbo, Toowoomba, Forbes (cattle), Pakenham, Wagga Wagga (cattle), Tamworth, Bendigo, Muchea (cattle), Corowa, Ballarat (cattle)
Despite the low numbers, and with many buyers and saleyards out of the loop, the EYCI remained steadfast at 1,085¢/kg cwt. Roma store contributed 21% of the index at 1,064¢/kg cwt, and with no Wagga in the mix this week, Dalby was 17% at 1,095¢/kg, followed by Moss vale at 8% at 1,090¢/kg
Over in the west, the WYCI strengthened 17¢(1%) to1,219¢/kg on a small yarding of 435 head, with only mount barker contributing to the index, with the average price supported by the vealer ratio reaching 96%. In contrast, the handful of steers and heifers in the market traded at ~1,000¢/kg- 20% lower than the index.
This week, we compared the national categories with prices from two weeks prior, and it’s a sea of red ink with one exception. Heavy steers surged 5% to 446¢/kg lwt. The wooden spoon went to medium steers, which lost 5% to close at 422¢/kg lwt. Restockers fared poorly also, losing 16¢ to close at 657¢/kg lwt.
The US frozen cow 90CL crept up 2¢(<1%) to 304¢US/lb and gained 14¢(2%) in Aussie dollar terms, closing the week at 888¢/kg swt. Brazillian product into the US continues to be a threat to Australia’s position in the imported 90CL market as COVID related logistics problems in China have forced Brazillian processors’ hand in sending more product to the US. Steiner reports that the US simply pays sufficiently more than other markets, so absorbing the tariff is the best out of a number of bad options for Brazil currently.
Holidays set a lethargic tone
East Coast slaughter dropped 21% last week compared to the prior week, coming in at 74,146 head. Missing from the mix due to Monday’s holiday were Dubbo, Wagga, and Tamworth, among others. This is 22% below the figure achieved at the same time last year. However, bear in mind that easter landed two weeks earlier in 2021 so we aren’t comparing apples with apples there.
The easter four day week took its toll on yardings as expected, with numbers down 36% on the prior week to 26,773 head. That’s 48% below the same time last year, but again, with easter positioned differently in 2020, it’s not directly comparable. Activity on AuctionsPlus was also lacklustre, with yardings down 45% to 6,798 head.
Looking forward, MLA’s Jenny Lim reports that Sales that will be skipped over due to Anzac day next week include Mortlake, Dubbo, Toowoomba, Forbes (cattle), Pakenham, Wagga Wagga (cattle), Tamworth, Bendigo, Muchea (cattle), Corowa, Ballarat (cattle)
Despite the low numbers, and with many buyers and saleyards out of the loop, the EYCI remained steadfast at 1,085¢/kg cwt. Roma store contributed 21% of the index at 1,064¢/kg cwt, and with no Wagga in the mix this week, Dalby was 17% at 1,095¢/kg, followed by Moss vale at 8% at 1,090¢/kg
Over in the west, the WYCI strengthened 17¢(1%) to1,219¢/kg on a small yarding of 435 head, with only mount barker contributing to the index, with the average price supported by the vealer ratio reaching 96%. In contrast, the handful of steers and heifers in the market traded at ~1,000¢/kg- 20% lower than the index.
This week, we compared the national categories with prices from two weeks prior, and it’s a sea of red ink with one exception. Heavy steers surged 5% to 446¢/kg lwt. The wooden spoon went to medium steers, which lost 5% to close at 422¢/kg lwt. Restockers fared poorly also, losing 16¢ to close at 657¢/kg lwt.
The US frozen cow 90CL crept up 2¢(<1%) to 304¢US/lb and gained 14¢(2%) in Aussie dollar terms, closing the week at 888¢/kg swt. Brazillian product into the US continues to be a threat to Australia’s position in the imported 90CL market as COVID related logistics problems in China have forced Brazillian processors’ hand in sending more product to the US. Steiner reports that the US simply pays sufficiently more than other markets, so absorbing the tariff is the best out of a number of bad options for Brazil currently.
The week ahead….
Next week is another short four day week, so somewhat subdued yardings and slaughter can be expected again. Bear in mind that with such low yardings numbers, and with buyers and sellers missing from the picture, market prices are probably somewhat distorted away from what would be normal for some specifications. How prices land in early May will be more telling about where the market is really operating.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Steiner, Mecardo
Categories
Have any questions or comments?
Yardings lift along with heavy steer prices
Last week we saw cattle yardings lift back towards 5-year average levels as we had our first full week of sales since May, while slaughter
Northern rain too late to support strong rebuild?
It recently looked like the monsoon season for cattle country in central & far north QLD and the NT was not looking too promising, despite
Signs of renewed post-holiday demand
This week was one of positivity despite the increased supply coming onto the market as we experienced the first full week of sales uninterrupted by
China creeping higher in export beef standings
April is usually a slow beef export month. The run of public holidays mean less beef can be produced and less put on boats. The
Don’t have an account with us? Join free.
You can have full premium access to all of our content with a monthly or annual subscription.
Alternatively, create a free account to access our Insights blog and two free premium article a month!
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.