A hot start to the year has cattle swarming the yards but despite strong fundamentals for the cattle industry this season, immense supply all at once overwhelmed the market this week.
Last week east coast yardings eclipsed 90K head and preliminary figures have this week’s number at just under 88k head. It’s been an unprecedented fortnight for saleyard throughput with east coast yardings over 178,000 head. This is well and truly the largest fortnight of east coast throughput this century for NLRS saleyard yardings.
Supply pressure was evident across the major saleyards in the east and saleyard reports per MLA detail the impact of these numbers. Starting down south, Wodonga saw restocker buyers still throwing their weight around for the pick of the yearlings, and processors seeing the wave of stock available throughout the country this week avoided pushing prices higher. Wagga was indicative of the week that was with fewer northern buyers present at a sale where secondary quality cattle supply increased significantly week on week. Dubbo saw strong numbers of prime cattle and supply of yearlings outweighed the demand of buyers present in Gunnedah. Cows held firm in Roma despite the jump in numbers, and all buyers were present but operating in a flooded market in Dalby.
Restockers yearling indicators declined with the influx of stock (with price declines for heifers outpacing steers). At a national level, restocker heifers lost 23¢ to 312¢/kg lwt and restocker steers dropped 18¢ to 394¢/kg lwt. Processor cow and Heavy steer indicators were insulated mostly from the easing market. Margins for cows remain strong at current levels for processors and ideal heavy stock is still a relatively tight commodity to acquire (particularly in the south).
The Western Young Cattle Indicator (WYCI) finished 14¢ lower to 585¢/kg cwt. Muchea yardings tripled and seasonal weaner buyers pushed the market upward. Buyers were more selective at Mount Barker.
Next week
Restockers have pilfered the pick of the weaners down south earlier in the month and northern feedlot buyers look to have immediate needs met according to reports by Argus. So, the dial might be turned down a notch for restocker demand particularly if we see another 80-90k head yarding next week.
Processors are still well and truly getting amongst the action, slaughter last week reached 132,886 head nationally which is 14% above year-ago levels. At this pace of throughput though there are only so many cattle they can acquire at current price levels.
Australia’s live cattle export numbers lifted significantly in July but remain subdued for the year-to-date compared to the five-year-average. More competition for lower supply and
The cattle market felt the chill of mid-winter this week as prices fell across the board despite slightly lower throughput. Support remains seemingly strong in
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.
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.
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.
Producers flood the market
Next week
Restockers have pilfered the pick of the weaners down south earlier in the month and northern feedlot buyers look to have immediate needs met according to reports by Argus. So, the dial might be turned down a notch for restocker demand particularly if we see another 80-90k head yarding next week.
Processors are still well and truly getting amongst the action, slaughter last week reached 132,886 head nationally which is 14% above year-ago levels. At this pace of throughput though there are only so many cattle they can acquire at current price levels.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, Argus, Steiner Consulting Group, Mecardo
Categories
Have any questions or comments?
Live export trade slips as domestic market soaks up supply
Australia’s live cattle export numbers lifted significantly in July but remain subdued for the year-to-date compared to the five-year-average. More competition for lower supply and
The north-south divide is opening up again for young cattle
The cattle market felt the chill of mid-winter this week as prices fell across the board despite slightly lower throughput. Support remains seemingly strong in
A bit of applied futures theory
The latest Bureau of Meteorology (BOM) three months outlook points towards a weaker chance of a wet spring. This doesn’t mean that we’ll be in
More weaners come forward
Weaners remain on the move, and interest took a slight step back this week as we enter a transition period for cattle markets with spring
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.