National cattle yardings jumped significantly this week, but it didn’t put downward pressure on prices, as indicators rose across the board. Young cattle, feeders, and restocker performed particularly well this week, indicating a more positive outlook for the cattle market in general moving forward.
Meat and Livestock Australia reported
cattle yarding numbers increased by more than 10,000 head this week, to just
above 50,000, but remained about 7000 head below both the five-year average for
this sale week. Higher numbers at store sales in Mortlake, Victoria, and Roma,
Queensland, made up a majority of the difference. The week-delayed slaughter
figures however, while dropping week-on-week in line with lower yardings last
week, continued their strong trend and were about 23% higher year-on-year.
The Eastern States Young Cattle Indicator
lifted significantly this week, up more than 40¢/kg to land at 443¢/kg.
Queensland sales (Roma store and Dalby) had the highest EYCI throughput and
both operated at well above the EYCI average, indicating rainfall in the north
is supporting demand.
Feeders took the biggest volume of EYCI-eligible
stock this week, with more than 50%. Restockers were also active and once again
paid a good premium, spending an average of 478¢/kg, more than 40¢/kg above the
EYCI average. The EYCI, while still just 45% of the price it was this time last
year, has lifted an optimistic 93¢/kg for the month.
The latest Australian Lot Feeders
Association and MLA lotfeeding brief show the September quarter as having the
highest grainfed beef volume on record, with cattle on feed continuing to
increase for the quarter as well. The national feeder steer price has been on
the increase since the start of the month, increasing 20¢/kg this week to
237¢/kg. Argus Meat and Livestock put the increase down to predicted rainfall
in the coming week, with some feeders trying to secure numbers before they
either can’t get them or the price potentially rises further, rather than
because of any increase to their income at the other end.
At the finished end, the heavy setter price
did lift this week to 210¢/kg, a more modest rise of 9¢/kg for the month than
the other indicators. Processor cows held pretty firm this week, up just 3¢/kg
to 172¢/kg, and have climbed about 17¢/kg for the month. Restocker steers and
heifers, on the other hand, have increased the most in the past four weeks, up
67¢/kg and 52¢/kg respectively – perhaps the biggest sign things are looking
more optimistic for cattle.
Next week
Forecast rain on the East Coast could
put further positive sentiment in the cattle market, and with the festive
season closures just a month away, all types of buyers will be making sure they
have what they want before the break. Rainfall in the right areas could prompt
producers to hang onto cattle in the new year as well, in the hope the price
trends will continue in the current direction.
Plenty is happening in the beef market as production begins to ramp up. Whilst saleyard prices this week effectively tracked sideways there looks to be
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Positive market moves continue
The Eastern States Young Cattle Indicator lifted significantly this week, up more than 40¢/kg to land at 443¢/kg. Queensland sales (Roma store and Dalby) had the highest EYCI throughput and both operated at well above the EYCI average, indicating rainfall in the north is supporting demand.
Feeders took the biggest volume of EYCI-eligible stock this week, with more than 50%. Restockers were also active and once again paid a good premium, spending an average of 478¢/kg, more than 40¢/kg above the EYCI average. The EYCI, while still just 45% of the price it was this time last year, has lifted an optimistic 93¢/kg for the month.
The latest Australian Lot Feeders Association and MLA lotfeeding brief show the September quarter as having the highest grainfed beef volume on record, with cattle on feed continuing to increase for the quarter as well. The national feeder steer price has been on the increase since the start of the month, increasing 20¢/kg this week to 237¢/kg. Argus Meat and Livestock put the increase down to predicted rainfall in the coming week, with some feeders trying to secure numbers before they either can’t get them or the price potentially rises further, rather than because of any increase to their income at the other end.
At the finished end, the heavy setter price did lift this week to 210¢/kg, a more modest rise of 9¢/kg for the month than the other indicators. Processor cows held pretty firm this week, up just 3¢/kg to 172¢/kg, and have climbed about 17¢/kg for the month. Restocker steers and heifers, on the other hand, have increased the most in the past four weeks, up 67¢/kg and 52¢/kg respectively – perhaps the biggest sign things are looking more optimistic for cattle.
Next week
Forecast rain on the East Coast could put further positive sentiment in the cattle market, and with the festive season closures just a month away, all types of buyers will be making sure they have what they want before the break. Rainfall in the right areas could prompt producers to hang onto cattle in the new year as well, in the hope the price trends will continue in the current direction.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources:MLA| Mecardo
Categories
Have any questions or comments?
Are things about to ramp up?
Plenty is happening in the beef market as production begins to ramp up. Whilst saleyard prices this week effectively tracked sideways there looks to be
Rebuild ready despite high herd
Producer sentiment has lifted to its highest point in the beef industry since Meat & Livestock Australia began using a national survey to gauge the
Buyers want beef not cattle
The cattle market was mixed this week as a cooler change (and no public holiday) saw numbers flood back to saleyards. National indicators show that
Beef outlook strong, cattle another question
A quick review of data coming out of the US comes with the conclusion that extreme global beef demand isn’t going anywhere for some time.
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Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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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.
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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.