Cattle slaughter rates have reached levels not seen since 2020, and so this week’s big beef news of China removing import suspensions on five Australian processors should help to absorb the rising production volumes. While Aussie beef has still been flowing to China this year at near average levels, the regained access for another five processors is set to open the door for more trade opportunities.
The Eastern Young Cattle Indicator dropped back under the $6/kg mark after losing 22¢ over the week. Dalby, Roma store and Casino sale reports noted well-bred lined met fair demand however prices suffered on cattle of lesser quality and roughness in the coat. Restockers were the most active buyers of vealer and weaner cattle this week, paying on average 17¢ or 3% more than feeder buyers.
In the West, the smell of rain saw young cattle hold their value after last week’s rally. The Western Young Cattle Indicator rose 2¢ to 490¢/kg cwt.
Supply & processing capacity continues to be the enemy of cow prices. The National Processor Cow Indicator dropped 15¢ over the week to 203¢/kg cwt. While prices are slightly higher year on year, cows are trading back at the lower end of the range for 2024 in eastern states. The rain that’s fallen this week as well as that on the forecast for next, is likely to see some slight decline in cow numbers being offloaded, however in other parts of the country water logged paddocks and depleted feed will halt any significant decline.
Feeder and heavy steer prices at saleyards held their levels this week, declining just 2 & 1¢ respectively. Seasonal tightening of angus feeders is driving stronger prices, but this is in contrast to cross-bred feeders that continue to flow in big numbers.
The weekly slaughter figures very clearly show where the pressure point is in the market. For the week ending the 24th of May, 139,285 cattle were processed nationally. This is the biggest week of slaughter since 2020, and was 20% more cattle processed than the same week last year.
Next week
Rising slaughter rates are a positive that processors are increasing capacity, but this will only go so far. We expect supply will remain elevated through June due to strong herd numbers, although another dose of heavy rain in key cattle areas may cause some short-term disruptions.
The final selling week for the 23/24 financial year saw prices fluctuate within a single-digit percentage range. Attendance from the buying field is strong according
Lighter cattle and lower temperatures have seen the cattle market ease slightly this week. Depending on your business needs and goals (growers and processors alike)
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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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Let’s hope China’s hungry
The Eastern Young Cattle Indicator dropped back under the $6/kg mark after losing 22¢ over the week. Dalby, Roma store and Casino sale reports noted well-bred lined met fair demand however prices suffered on cattle of lesser quality and roughness in the coat. Restockers were the most active buyers of vealer and weaner cattle this week, paying on average 17¢ or 3% more than feeder buyers.
In the West, the smell of rain saw young cattle hold their value after last week’s rally. The Western Young Cattle Indicator rose 2¢ to 490¢/kg cwt.
Supply & processing capacity continues to be the enemy of cow prices. The National Processor Cow Indicator dropped 15¢ over the week to 203¢/kg cwt. While prices are slightly higher year on year, cows are trading back at the lower end of the range for 2024 in eastern states. The rain that’s fallen this week as well as that on the forecast for next, is likely to see some slight decline in cow numbers being offloaded, however in other parts of the country water logged paddocks and depleted feed will halt any significant decline.
Feeder and heavy steer prices at saleyards held their levels this week, declining just 2 & 1¢ respectively. Seasonal tightening of angus feeders is driving stronger prices, but this is in contrast to cross-bred feeders that continue to flow in big numbers.
The weekly slaughter figures very clearly show where the pressure point is in the market. For the week ending the 24th of May, 139,285 cattle were processed nationally. This is the biggest week of slaughter since 2020, and was 20% more cattle processed than the same week last year.
Next week
Rising slaughter rates are a positive that processors are increasing capacity, but this will only go so far. We expect supply will remain elevated through June due to strong herd numbers, although another dose of heavy rain in key cattle areas may cause some short-term disruptions.
Have any questions or comments?
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Data sources: MLA, Steiner Consulting Group, BOM, Mecardo
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Have any questions or comments?
Steer-ing through a mixed market
The final selling week for the 23/24 financial year saw prices fluctuate within a single-digit percentage range. Attendance from the buying field is strong according
I heard the herd was bigger
There has been a bit of talk around lately regarding the Australian Bureau of Statistics (ABS) official cattle herd numbers, and how they have ramped
It’s all in the numbers
The real surprise from this week’s market didn’t come from the usual reports of price or supply but the ABS release of the 2023 cattle
Lower temperatures but opportunity warming up?
Lighter cattle and lower temperatures have seen the cattle market ease slightly this week. Depending on your business needs and goals (growers and processors alike)
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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.