We’ve got a bit of catching up to do with two weeks of slaughter data being released this week by MLA (due to the impacts of the floods delaying the week prior’s figures).
For the week ending 25/02/22 national cattle slaughter levels were relatively high at 90,466 (compared to the last two years) but still well off the 5-year average by 20-30,000 head. The floods and related logistics issues took their toll however, with slaughter falling 13% last week to 77,385 head.
While the direct impact of the floods on processors has somewhat subsided, logistics problems have emerged, with stocks of chilled and frozen beef building up in ports and cold storage facilities as flow of freight out Brisbane’s main port moves at a snail’s pace. There are now reports that cold storages are filling up, and major processors are cancelling shifts as they struggle to find space to park the finished beef.
East coast yardings plummeted 36% week on week to a total of 30,305 head. The dramatic fall was driven by a huge pullback in offerings coming out of QLD, which were down 12,000 head, or 56% week on week. NSW and VIC producers also held back cattle from market, with yardings down 18% in both states. This week’s EYCI yardings lifted 21% 10,590 head though, so we can expect a rebound in supply being reflected in the data release next week.
The EYCI lifted 10¢ (1%) to 1,124¢/kg cwt. Roma store lead the way again, contributing 25% to the weekly index, at 1,169¢/kg cwt, followed by Dalby, also at 19%, and 1,138¢/kg cwt.
Over in the west, the WYCI backtracked 15¢(1%) to 1,115¢/kg cwt, again on a reasonably solid yarding of 979 head, which was up on the prior week, while the Vealer ratio in the index remained at 85%.
On the national categories, there was mostly red ink on the board, with restocker and feeder steer prices drifting south, however medium and processor steer prices posted modest gains.
Supply of restocker steers was 34% higher than the prior week, at 1,327 eligible cattle within the index, which may have weighed on prices, with yearlings at Dalby recovering from only marketing a few head last week to representing 30% of the index this week.
The US frozen cow 90CL price has slipped 2¢ (<1%) in US dollar terms, to 305¢US/lb and in Australian dollar terms, dropped 20¢ (-2%) to 919¢/kg swt, with the appreciation in the AUD a significant factor. Steiner reports that the turmoil in commodity markets has caused imported meat buyers to move to the sidelines for the time being as they reassess their strategies, making traded volumes even thinner than usual. This brought some sellers out of the woodwork, causing prices to be trimmed slightly.
Overflowing cold storage threatens slaughter
We’ve got a bit of catching up to do with two weeks of slaughter data being released this week by MLA (due to the impacts of the floods delaying the week prior’s figures).
For the week ending 25/02/22 national cattle slaughter levels were relatively high at 90,466 (compared to the last two years) but still well off the 5-year average by 20-30,000 head. The floods and related logistics issues took their toll however, with slaughter falling 13% last week to 77,385 head.
While the direct impact of the floods on processors has somewhat subsided, logistics problems have emerged, with stocks of chilled and frozen beef building up in ports and cold storage facilities as flow of freight out Brisbane’s main port moves at a snail’s pace. There are now reports that cold storages are filling up, and major processors are cancelling shifts as they struggle to find space to park the finished beef.
East coast yardings plummeted 36% week on week to a total of 30,305 head. The dramatic fall was driven by a huge pullback in offerings coming out of QLD, which were down 12,000 head, or 56% week on week. NSW and VIC producers also held back cattle from market, with yardings down 18% in both states. This week’s EYCI yardings lifted 21% 10,590 head though, so we can expect a rebound in supply being reflected in the data release next week.
The EYCI lifted 10¢ (1%) to 1,124¢/kg cwt. Roma store lead the way again, contributing 25% to the weekly index, at 1,169¢/kg cwt, followed by Dalby, also at 19%, and 1,138¢/kg cwt.
Over in the west, the WYCI backtracked 15¢(1%) to 1,115¢/kg cwt, again on a reasonably solid yarding of 979 head, which was up on the prior week, while the Vealer ratio in the index remained at 85%.
On the national categories, there was mostly red ink on the board, with restocker and feeder steer prices drifting south, however medium and processor steer prices posted modest gains.
Supply of restocker steers was 34% higher than the prior week, at 1,327 eligible cattle within the index, which may have weighed on prices, with yearlings at Dalby recovering from only marketing a few head last week to representing 30% of the index this week.
The US frozen cow 90CL price has slipped 2¢ (<1%) in US dollar terms, to 305¢US/lb and in Australian dollar terms, dropped 20¢ (-2%) to 919¢/kg swt, with the appreciation in the AUD a significant factor. Steiner reports that the turmoil in commodity markets has caused imported meat buyers to move to the sidelines for the time being as they reassess their strategies, making traded volumes even thinner than usual. This brought some sellers out of the woodwork, causing prices to be trimmed slightly.
The week ahead….
We’ve seen early signals that cattle are returning to market this week, and that demand for young cattle is still solid despite the disruption that the floods have caused. All eyes are on the port of Brisbane though, and a return to normal service as without it, northern demand for finished cattle could be constrained.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, NLRS Mecardo
Categories
Have any questions or comments?
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.
Herd hits cyclical high
Meat and Livestock Australia’s latest industry projections have Australia’s beef cattle herd having reached its maturity, with numbers now back on the decline. This assumption
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.