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) there is value to be found.
The Eastern Young Cattle Indicator this week has eased 14 cents
(2.3%) after a 12% increase in throughput to the yards (16K). Trawling through saleyard reports, for the
most part, the cattle available were on the lighter side. As a result, more cattle found their way back
to the paddock this week compared to last, as the number of yearling steers and
heifers sold to restockers lifted 99% and 43% respectively, albeit at a more
affordable price point.
Whilst the female slaughter ratio tells us we aren’t in a
herd liquidation, plenty of cattle have exited the paddock this year, and if
there is confidence in feed and stock are at a lower price point, those who
want to go again might be looking for ideal stock in the weeks to come. As the
mercury drops, bidding continues to be more selective, Restocker yearling
steers were flat to 330c/kg lwt and Restocker heifers declined 10 cents to
236c/kg lwt.
Processor cow throughput essentially tracked sideways, and
the indicator finished the week 4 cents lower to 217 c/kg lwt. Saleyard reports from Roma, Dalby and Wodonga
all cited the presence of additional processor buyers for cows this week. While we have seen the 90CL come off 9% after
the high tide mark at the beginning of May, in the depths of Winter cows still
look to be value buying for processors.
Figure 2 shows the Processor Cows basis to the Eastern Young
Cattle Indicator. At a national level, cows destined for the abattoir are
selling at a 49% discount (dressed weight) to young cattle as of this week. Supply, Demand and saleyard pricing are
incredibly dynamic and change week to week, but we can see the impact of the
wider trends dictating buyers’ thought processes. When
we look at the beginning of February 2023, (when the processor cow discount was
the same, 49%), the 90CL was 707 AUc/kg, today it’s 886 AUc/kg, 25% higher. Processors
can see that it’s definitely worth getting in the car to have a look at what’s
happening at the yards.
Next week
Last week East Coast slaughter reached 137,808 head, the 2nd highest number for the year and is likely to be lower next week based on the weight of cattle that made it through the yards this week.
With conditions still varying greatly North vs South, more buyers might be travelling further looking for value in the coming weeks.
With rain falling in parts of southern Australia in recent days, and more set to follow, there could be increased opportunity for restocker movement in
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.
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.
Lower temperatures but opportunity warming up?
The Eastern Young Cattle Indicator this week has eased 14 cents (2.3%) after a 12% increase in throughput to the yards (16K). Trawling through saleyard reports, for the most part, the cattle available were on the lighter side. As a result, more cattle found their way back to the paddock this week compared to last, as the number of yearling steers and heifers sold to restockers lifted 99% and 43% respectively, albeit at a more affordable price point.
Whilst the female slaughter ratio tells us we aren’t in a herd liquidation, plenty of cattle have exited the paddock this year, and if there is confidence in feed and stock are at a lower price point, those who want to go again might be looking for ideal stock in the weeks to come. As the mercury drops, bidding continues to be more selective, Restocker yearling steers were flat to 330c/kg lwt and Restocker heifers declined 10 cents to 236c/kg lwt.
Processor cow throughput essentially tracked sideways, and the indicator finished the week 4 cents lower to 217 c/kg lwt. Saleyard reports from Roma, Dalby and Wodonga all cited the presence of additional processor buyers for cows this week. While we have seen the 90CL come off 9% after the high tide mark at the beginning of May, in the depths of Winter cows still look to be value buying for processors.
Figure 2 shows the Processor Cows basis to the Eastern Young Cattle Indicator. At a national level, cows destined for the abattoir are selling at a 49% discount (dressed weight) to young cattle as of this week. Supply, Demand and saleyard pricing are incredibly dynamic and change week to week, but we can see the impact of the wider trends dictating buyers’ thought processes. When we look at the beginning of February 2023, (when the processor cow discount was the same, 49%), the 90CL was 707 AUc/kg, today it’s 886 AUc/kg, 25% higher. Processors can see that it’s definitely worth getting in the car to have a look at what’s happening at the yards.
Next week
Last week East Coast slaughter reached 137,808 head, the 2nd highest number for the year and is likely to be lower next week based on the weight of cattle that made it through the yards this week.
With conditions still varying greatly North vs South, more buyers might be travelling further looking for value in the coming weeks.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: Mecardo, MLA, Steiner Consulting Group,
Categories
Have any questions or comments?
Season shores up cow price
With rain falling in parts of southern Australia in recent days, and more set to follow, there could be increased opportunity for restocker movement in
Rain slows supply, restockers ramp up
Cattle yardings fell to their lowest levels in two months this week, which helped push prices higher right across the board. Rainfall over the past
A cattle slaughter peak is coming?
With October coming to an end, it’s usually a time of increasing cattle supply and slaughter rates. Historically, this ties in with weaker prices, but
Lower numbers stop the drop
After the heat has taken some of the shine off cattle indicators in the last few weeks, a 21% week-on-week drop in supply has halted
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.
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.