While there has been plenty thrown at Australian beef producers this week from outside the saleyard, the market has been on the rise, with all indicators stronger week-on-week. Flooding rains and new tariffs from Trump will no doubt impact the sector in the weeks, months and years to come, but for those that sold this week, lower throughput helped spur the market higher across all categories.
Yardings were down about 20,000 head this week, and last week’s slaughter figures also fell by a similar number. This was no doubt rainfall impacted, with recent decent falls dragging NSW numbers back by about 15,000. Less than half the number of cattle went through Queensland yard’s than the week prior, as sales in Gracemere, Charters Towers and Blackall were cancelled or postponed. The flood impacted region in Western Queensland is said to be home to about a fifth of all cattle in the state, so the effect of those terrible losses on the market are still to play out.
In the short term, Meat & Livestock are reporting both the losses and the lasting impact on the ability for producers to get their cattle to market, as well as the likelihood those in other areas which received good rainfall without flooding will hold onto stock longer, as already pushing up their Northern Feeder price by 10c/kg this week to 373c/kg, with more increases to come.
The Eastern Young Cattle Indicator responded strongly this week, increasing more than 40c/kg to 703c/kg, and now more than 100c/kg stronger year-on-year. Feeder buyers continued to hold the biggest market share taking more than 50% of the EYCI eligible stock. The national feeder steer price was up about 16c/kg to just shy of 388c/kg, while both restocker steers and heifer indicators experienced a significant fall in throughput numbers and increase in prices, up 26c/kg and 30c/kg respectively.
Further from home it was the announcement of a 10% tariff on all Australian beef headed to the US – our largest export customer for that product – that was the focus. Most pundits are forecasting little negative impact on Australian domestic cattle prices for now, as the demand from America for our lean beef remains high due to their low herd numbers. It certainly didn’t dampen the processor cow price this week, which rose a further 32c/kg, to be up 50c/kg for the month and now trading at 37% above the same time last year. It is also more than 100c/kg above the five-year-average.
Next week
There should be only upward momentum for the cattle market this week as supply is likely to remain slightly subdued and buyers try to secure numbers prior to plenty of public holiday disruptions in the second half of the month. We hope those experiencing the effects of flooding in the north can find some relief as the rainfall ceases. All eyes will also be waiting to see what retaliatory tariffs other countries place on the US, and if they create any potential market opportunities for Australia.
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Prices rally after rain
Yardings were down about 20,000 head this week, and last week’s slaughter figures also fell by a similar number. This was no doubt rainfall impacted, with recent decent falls dragging NSW numbers back by about 15,000. Less than half the number of cattle went through Queensland yard’s than the week prior, as sales in Gracemere, Charters Towers and Blackall were cancelled or postponed. The flood impacted region in Western Queensland is said to be home to about a fifth of all cattle in the state, so the effect of those terrible losses on the market are still to play out.
In the short term, Meat & Livestock are reporting both the losses and the lasting impact on the ability for producers to get their cattle to market, as well as the likelihood those in other areas which received good rainfall without flooding will hold onto stock longer, as already pushing up their Northern Feeder price by 10c/kg this week to 373c/kg, with more increases to come.
The Eastern Young Cattle Indicator responded strongly this week, increasing more than 40c/kg to 703c/kg, and now more than 100c/kg stronger year-on-year. Feeder buyers continued to hold the biggest market share taking more than 50% of the EYCI eligible stock. The national feeder steer price was up about 16c/kg to just shy of 388c/kg, while both restocker steers and heifer indicators experienced a significant fall in throughput numbers and increase in prices, up 26c/kg and 30c/kg respectively.
Further from home it was the announcement of a 10% tariff on all Australian beef headed to the US – our largest export customer for that product – that was the focus. Most pundits are forecasting little negative impact on Australian domestic cattle prices for now, as the demand from America for our lean beef remains high due to their low herd numbers. It certainly didn’t dampen the processor cow price this week, which rose a further 32c/kg, to be up 50c/kg for the month and now trading at 37% above the same time last year. It is also more than 100c/kg above the five-year-average.
Next week
There should be only upward momentum for the cattle market this week as supply is likely to remain slightly subdued and buyers try to secure numbers prior to plenty of public holiday disruptions in the second half of the month. We hope those experiencing the effects of flooding in the north can find some relief as the rainfall ceases. All eyes will also be waiting to see what retaliatory tariffs other countries place on the US, and if they create any potential market opportunities for Australia.
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Data sources: MLA, Argus, Mecardo
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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.
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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.