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The cattle market has been headed in only one direction this week, and that is down. All the major indicators lost ground as yardings, and slaughter remain elevated as many areas eagerly await the end of a dry summer - which for some is likely on its way with the current weather event.

Slaughter numbers – although a week delayed – tell the biggest story about prices, rising to the highest weekly volume for the year of 147,133 head. We have to go back to late 2019 to find a weekly total higher. Queensland was responsible for much of the week-on-week increase, sending an extra 2500 head to the processors. This week’s yarding remained on-par with last, at just above 72,000 head, which is about 50% above the five-year-average for the corresponding week.

The processor cow price took one of the biggest hits, despite 3000 head less through the indicator this week than last. It closed the week at 496¢/kg, an 11% dip week-on-week, but still a solid 15% stronger than the same time last year. It wasn’t just one particular area which felt the pinch either, with yards right down the east coast recording cow prices below the average. Restockers, both steers and heifers, were down 25¢/kg and 28¢/kg respectively, with restocker steers now back to year-ago levels at 355¢/kg.

The National Young Cattle Indicator fell more than 10¢/kg for the week to 344¢/kg, its lowest point since the start of October last year. Again, this was primarily driven by Queensland, with Roma store sale making up 22% of the NYCI throughput for the week, and that yard only averaging 331¢/kg. This was also reflected in the Eastern Young Cattle Indicator, which lost about 8¢/kg for the week. Feeder steers faired the best this week, losing less than 5¢/kg despite being the only major indicator to see an increase in throughput.

The latest export data has come in this week, with beef volumes up 25% to 117,502 tonnes, a record for the month of February. The US once again took the biggest market share, with 64% more Australian beef headed that way than the same month last year. Live exports have also been on the rise, as Indonesia looks to Australia to fill a market gap as Indian buffalo meat experiences a significant price rise. MLA’s cattle market outlook will be released on Monday, giving us further insight into the year ahead.

The week ahead….

Cyclone Alfred is what is on everyone’s radar this week, and we are hoping everyone keeps safe and sound. How far, wide and significant the corresponding rainfall event is will likely have some impact on the market in the coming fortnight as producers react to how it plays out.

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Data sources: Mecardo; Meat and Livestock Australia

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