There was a return to relatively normal supply last week, but the market held its ground against the big lift in numbers. AuctionsPlus reported last week that it was their largest volumes of cattle on offer since April 2021 with an abundance of ‘mid-weight steers, heifers and PTIC breeders’ lifting the overall supply numbers.
Larger numbers were also seen in the slaughter figures last week, with Meat & Livestock Australia (MLA) reporting over 25,000 (<40%) more head of cattle slaughtered on the east coast than the Australia day week, however, this is still 8% down on the same week of 2021.
Yardings also increased, with 113% more cattle sent to the yards. Just over 36,000 cattle were yarded on the east coast for the week ending 4th of February 2022 compared to 17,000 the week prior.
The Eastern Young Cattle Indicator (EYCI) softened this week down 11¢ (-0.9%) to 1,119¢/kg cwt. Dalby was the largest contributor to the index again this week, at 16% of the seven-day rolling volume, with a price of 1,115¢/kg cwt. This was closely followed by Roma store, which notched up the highest average price of the week at 1,202¢/kg cwt, and represented 12% of the index.
Over in the west, the Western Young Cattle Indicator (WYCI) fell 29¢ for the week to settle at 1087¢/kg cwt with just over 300 head of cattle contributing to the indicator.
All the national cattle indicators lifted on the week prior. The Vealer, Processor & Heavy Steer indicators were all 15¢+, although in NSW the Vealer & Processor Steer indicators fell. The Restocker Yearling, Feeder, Medium Steer & National Cow indicators all made modest gains between 1.5 & 4.4¢.
Over to the US and buyers there continue to face shortages of supply despite taking increases from Brazil. This week on Mecardo Angus Brown looked at the relationship between the US 90CL beef price and our cattle market (view article). It looks like the 90CL’s current high price range will be supported in the next few years as cow herd liquidation and fewer heifers being retained in the US means lower beef supplies are still forecast there for the next 2-3 years, due to the shrinking of their herd.
Speaking of, the US frozen cow 90CL price lifted by just 1¢ (0.1%) to 919¢/kg, on the back of a fall in the AUD last week. This week, the Aussie dollar recovered 1.2% to reach 0.716US.
Next week
With plenty of rain still falling about the northern half of Australia, demand for cattle from southern & central areas of Queensland should still continue to support the market, as well as the larger export market demand which shows no sign of slowing.
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.
Market absorbs supply boost
Larger numbers were also seen in the slaughter figures last week, with Meat & Livestock Australia (MLA) reporting over 25,000 (<40%) more head of cattle slaughtered on the east coast than the Australia day week, however, this is still 8% down on the same week of 2021.
Yardings also increased, with 113% more cattle sent to the yards. Just over 36,000 cattle were yarded on the east coast for the week ending 4th of February 2022 compared to 17,000 the week prior.
The Eastern Young Cattle Indicator (EYCI) softened this week down 11¢ (-0.9%) to 1,119¢/kg cwt. Dalby was the largest contributor to the index again this week, at 16% of the seven-day rolling volume, with a price of 1,115¢/kg cwt. This was closely followed by Roma store, which notched up the highest average price of the week at 1,202¢/kg cwt, and represented 12% of the index.
Over in the west, the Western Young Cattle Indicator (WYCI) fell 29¢ for the week to settle at 1087¢/kg cwt with just over 300 head of cattle contributing to the indicator.
All the national cattle indicators lifted on the week prior. The Vealer, Processor & Heavy Steer indicators were all 15¢+, although in NSW the Vealer & Processor Steer indicators fell. The Restocker Yearling, Feeder, Medium Steer & National Cow indicators all made modest gains between 1.5 & 4.4¢.
Over to the US and buyers there continue to face shortages of supply despite taking increases from Brazil. This week on Mecardo Angus Brown looked at the relationship between the US 90CL beef price and our cattle market (view article). It looks like the 90CL’s current high price range will be supported in the next few years as cow herd liquidation and fewer heifers being retained in the US means lower beef supplies are still forecast there for the next 2-3 years, due to the shrinking of their herd.
Speaking of, the US frozen cow 90CL price lifted by just 1¢ (0.1%) to 919¢/kg, on the back of a fall in the AUD last week. This week, the Aussie dollar recovered 1.2% to reach 0.716US.
Next week
With plenty of rain still falling about the northern half of Australia, demand for cattle from southern & central areas of Queensland should still continue to support the market, as well as the larger export market demand which shows no sign of slowing.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, NLRS, Mecardo
Categories
Have any questions or comments?
Grassroot gains slow the slide
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,
Tariff time impacts on beef
Despite pulling back hours before midnight, the consequences of the Trump tariffs on the North American cattle industry could be huge. Here, we take a
The Cattle Market’s January Joyride
The final selling week of the month had one less day with the Monday Australia Day public holiday. Value and volume took a dive this
Positive sentiment has herd size on the up?
Confidence in the beef cattle market climbed in line with the market conditions in 2024, and this will push the herd size even higher in
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.