The demand side of the supply chain continues to push the envelope as exports continue to flow, and now currency markets push Australian returns higher. Closer to home, and the supply slide into winter is lending support to markets as feeders begin to circle.
The winter supply lull has well and truly set in with this week’s saleyard throughput the lowest since Anzac Day. NLRS reported yardings declined 27% WoW to 51K head. Lower supply contributed to modest improvement across the saleyard indicators. The Eastern Young Cattle Indicator (EYCI) improved 15¢ to 727¢/kg cwt.
Winter is typically dominated by the feeding sector when it comes to supply into the processing sector, and both feeder steers (heading into the feedlot system) and heavy steer indicators (heading to the abattoir) improved by 20-22¢ this week.
Finished stock is front of mind for the market because exports continue to explode after another bumper month in June. With an appreciating aussie dollar and 90Cl prices increasing in USc/lb terms, returns on export beef continue to hover at the top of the record range. Last week’s reported slaughter of 158k head was the highest weekly total since December 2019, so it appears the job is still full speed ahead.
This week on Mecardo, Jamie–Lee Oldfield investigated the latest iteration of the Producer Intentions survey from MLA (Read more here). With more than one in every two producers planning to keep their herd size the same, an increased number of cattle sold or expected to be sold in the first half of the year, and reports of cows being put onto feed to fill future processor supply gaps, restocker opportunities could be limited come spring.
Next week
A lot of the rainfall in the last week was coastal and a weather rally is unlikely to push prices higher in the next few weeks. Competition for stock might ease but buyers will likely start to worry about what will be available come spring.
There was very little movement in the cattle market this week, with winter weather now impacting the quality of stock available. This saw processors shift
The world’s demand for protein has not waned this year despite plenty of global unrest. Australian beef exports have reached new highs across the board
The demand side of the supply chain continues to push the envelope as exports continue to flow, and now currency markets push Australian returns higher.
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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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Prices continue to improve in the depths of winter
The winter supply lull has well and truly set in with this week’s saleyard throughput the lowest since Anzac Day. NLRS reported yardings declined 27% WoW to 51K head. Lower supply contributed to modest improvement across the saleyard indicators. The Eastern Young Cattle Indicator (EYCI) improved 15¢ to 727¢/kg cwt.
Winter is typically dominated by the feeding sector when it comes to supply into the processing sector, and both feeder steers (heading into the feedlot system) and heavy steer indicators (heading to the abattoir) improved by 20-22¢ this week.
Finished stock is front of mind for the market because exports continue to explode after another bumper month in June. With an appreciating aussie dollar and 90Cl prices increasing in USc/lb terms, returns on export beef continue to hover at the top of the record range. Last week’s reported slaughter of 158k head was the highest weekly total since December 2019, so it appears the job is still full speed ahead.
This week on Mecardo, Jamie–Lee Oldfield investigated the latest iteration of the Producer Intentions survey from MLA (Read more here). With more than one in every two producers planning to keep their herd size the same, an increased number of cattle sold or expected to be sold in the first half of the year, and reports of cows being put onto feed to fill future processor supply gaps, restocker opportunities could be limited come spring.
Next week
A lot of the rainfall in the last week was coastal and a weather rally is unlikely to push prices higher in the next few weeks. Competition for stock might ease but buyers will likely start to worry about what will be available come spring.
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Data sources: Mecardo; Meat and Livestock Australia
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Have any questions or comments?
Winter chill weighs on cattle weights
There was very little movement in the cattle market this week, with winter weather now impacting the quality of stock available. This saw processors shift
Export records fall as demand beefs up
The world’s demand for protein has not waned this year despite plenty of global unrest. Australian beef exports have reached new highs across the board
Prices continue to improve in the depths of winter
The demand side of the supply chain continues to push the envelope as exports continue to flow, and now currency markets push Australian returns higher.
Producer survey shows early turnoff
As we reach the usual mid-winter contraction in supply, we can start to look ahead at what the spring might bring. Southern processors have had
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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.