Producers flood the market

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.