Yardings have backed off this week which has allowed for prices to slowly track higher after a hectic couple of weeks at the nation's saleyards.
Young cattle prices
took the stairs in July (Figure 1) improving 15% for the month and are now sitting
91¢ higher at the finish of this week compared to the start of July. Although
this week’s price rise was modest at 15 cents from the previous week, it
occurred amidst a slightly less intense buying group compared to recent weeks.
Despite this, saleyard reports noted strong markets in Roma for heavier weaner
cattle.
Whilst the praises
have been sung for cow markets for much of this year and will continue to be
sung for the run-up to Spring there was a slight easing this week. The National Processor Cow Indicator was down
3¢ to 275¢/kg lwt despite lower throughput. With the 90CL pushing higher again last week,
the appetite for cows is still expected to remain strong for some time.
This July has seen a rush of supply for a typically tight
time of year as producers looked to cash in on the winter price rally which had
eluded the trade for most of June. This is evident in the NLRS yarding figures
for July which exceeded 289K head nationally. This was 35% above the 5-year
average, and 54% above the July figure in 2023 and was just 997 head off the
numbers seen during the liquidation in 2019.
The divergence in seasons earlier in the year has created an
imbalance of where cattle can be sourced.
The push North from buyers to access heavier cattle reveals to us that there
isn’t enough cattle that meet buyer needs down South, a trend which is more
likely than not to persist into Spring.
Processors are still keeping busy, as national cattle
slaughter last week was 15% higher than the same week last year at 139K head.
Next week
With an abundance of feed at one end of the East Coast and feed required at the other end, things look to be playing into the hands of those with cattle to offload in the coming two months.
Meaningful rainfall next month is on the cards for South East QLD which might throw a spanner in the works (See Figure 2) as buyers start to think longer term.
The search for weight continues as buyers bid strongly for heavier cattle. With the supply agenda set by Meat & Livestock Australia last week, confidence
The Meat and Livestock Australia (MLA) Cattle Projections released last week have confirmed the theory that we are seeing peak cattle herd now, and supply
The BOM declared August as the hottest on record, for Northern East Coast producers it created ideal fattening conditions and allowed unimpaired movement of stock.
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.
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.
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 overcomes monster July yardings
Next week
With an abundance of feed at one end of the East Coast and feed required at the other end, things look to be playing into the hands of those with cattle to offload in the coming two months.
Meaningful rainfall next month is on the cards for South East QLD which might throw a spanner in the works (See Figure 2) as buyers start to think longer term.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Mecardo
Categories
Have any questions or comments?
Where are we with the FSR?
The female slaughter rate (FSR) is one of the key figures used to demonstrate what is happening with the Australian beef cattle herd. There has
Heavy cattle grabbing attention
The search for weight continues as buyers bid strongly for heavier cattle. With the supply agenda set by Meat & Livestock Australia last week, confidence
Is the herd turn enough to lift prices
The Meat and Livestock Australia (MLA) Cattle Projections released last week have confirmed the theory that we are seeing peak cattle herd now, and supply
Hot August sees supply build in September
The BOM declared August as the hottest on record, for Northern East Coast producers it created ideal fattening conditions and allowed unimpaired movement of stock.
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.
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.