East coast yardings fell 5%, reversing half of last weeks’ increase, probably on the back of the discouraging dip in prices we saw last week. The states were a mixed bag, with the big state of QLD’s 25% dip significantly offset by a 25% increase NSW’s smaller marketplace, with VIC relatively steady, and the typically volatile SA seeing a 37% jump.
Overall a 5% decrease in numbers saw 41,993 cattle yarded on the east coast for the week ending 4th September, which is 30% off the pace of last year. Slaughter numbers, saw a healthy increase, up 4% from the prior week, bringing the pace back up to where we a couple weeks ago. A total of 105,974 cattle were processed, which is down 28% compared to the same time in 2019.
This week provided no good news for the slaughter demand outlook. On the Victorian front, announcements were made on Sunday that the processor restrictions could drag on for even longer, as long as late November. Furthermore, JBS also declared it’s longer term intention to scale back its Dinmore QLD operations, dumping its second daily shift and 600 workers in an effort to retain its best workers with full time employment instead of the 60% fraction the entire workforce was operating at recently.
The Eastern Young Cattle Indicator (EYCI) eased again, with a 2% fall bringing it down to settle at 767¢/kg cwt. We can still be positive about this though, as the EYCI is still on par with where it was back in July, which is 61% above where it was last year.
On the categories this week, red ink is staining most of the board again, with the only bright star being a reversal of fortune for processors, which bounced back to where they were a fortnight ago, while all other categories slid backwards, including restockers losing favour for the second week in a row.
The vibe was upbeat for processors, rebounding back up a pleasing 20¢ (5%), to return back to the level of 401 ¢/kg lwt; but this was the only good news on the board for the week. Restockers seem to have lost some of their appeal of late, with restocker steers dropping another 7¢ (2%) to end the week at and feeders followed suit.
On the international front, the 90CL Frozen Cow price remained relatively steady, barely moving a smidgen to lose a measly 1¢ (2%) to finish the week at 665¢/ kg. The Aussie dollar continued its retreat in response to increased US strength, falling back a welcome 0.5% to 0.7276 US.
Processors rebound, but market falls.
East coast yardings fell 5%, reversing half of last weeks’ increase, probably on the back of the discouraging dip in prices we saw last week. The states were a mixed bag, with the big state of QLD’s 25% dip significantly offset by a 25% increase NSW’s smaller marketplace, with VIC relatively steady, and the typically volatile SA seeing a 37% jump.
Overall a 5% decrease in numbers saw 41,993 cattle yarded on the east coast for the week ending 4th September, which is 30% off the pace of last year. Slaughter numbers, saw a healthy increase, up 4% from the prior week, bringing the pace back up to where we a couple weeks ago. A total of 105,974 cattle were processed, which is down 28% compared to the same time in 2019.
This week provided no good news for the slaughter demand outlook. On the Victorian front, announcements were made on Sunday that the processor restrictions could drag on for even longer, as long as late November. Furthermore, JBS also declared it’s longer term intention to scale back its Dinmore QLD operations, dumping its second daily shift and 600 workers in an effort to retain its best workers with full time employment instead of the 60% fraction the entire workforce was operating at recently.
The Eastern Young Cattle Indicator (EYCI) eased again, with a 2% fall bringing it down to settle at 767¢/kg cwt. We can still be positive about this though, as the EYCI is still on par with where it was back in July, which is 61% above where it was last year.
On the categories this week, red ink is staining most of the board again, with the only bright star being a reversal of fortune for processors, which bounced back to where they were a fortnight ago, while all other categories slid backwards, including restockers losing favour for the second week in a row.
The vibe was upbeat for processors, rebounding back up a pleasing 20¢ (5%), to return back to the level of 401 ¢/kg lwt; but this was the only good news on the board for the week. Restockers seem to have lost some of their appeal of late, with restocker steers dropping another 7¢ (2%) to end the week at and feeders followed suit.
On the international front, the 90CL Frozen Cow price remained relatively steady, barely moving a smidgen to lose a measly 1¢ (2%) to finish the week at 665¢/ kg. The Aussie dollar continued its retreat in response to increased US strength, falling back a welcome 0.5% to 0.7276 US.
The week ahead….
We are seeing some reasonable rainfall forecast across the east coast, especially down in southern Victoria and SA over the next week. This may provide a confidence boost and help to tighten supply a little as producers hold onto their stock and lift demand for restockers again.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
Categories
Have any questions or comments?
A snapshot of US beef
US tariffs and trade are constantly in the news, and beef being one of the most important commodities Australia exports to the US, there is
Moovement at the Yards
The return to operation for QLD saleyards, lack of rain on the forecast and the looming run of public holidays saw more cattle pass through
Beef exports continue record run
The first week of April brought with it big changes in global trade, instigated in the first instance by new tariffs from the US and
Prices rally after rain
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
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.
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.