East coast slaughter numbers tracked upwards a net 3% last week, with QLD and NSW leading the way, both booking 4% lifts, whilst the tassie kill shot up 65%, however numbers slackened 15% in VIC, pulling down the final net result.
Overall east coast yardings inched up 1% last week, but the 13% and 21% weekly increments booked by NSW and VIC were offset by a 15% fall in QLD offerings. Supply is still historically low though, at 22% off the pace of what was seen this time last year.
However, EYCI yardings of 14,469 head this week, up 22% from last week are indicative that we might see a strong lift in yardings for this week when the data is released.
The EYCI rose by 8¢ (<1%) to 1,128¢/kg cwt, rebounding from last week’s minor reversal. Roma store lead the way, contributing 20% to the weekly index, at 1147¢/kg cwt, followed by Dalby at 14%, with 1168¢/kg cwt the average price of cattle there.
Over in the west, the WYCI lifted 23¢(2%) to 1,111¢/kg cwt, on a solid yarding of 953 head, up 310% from the prior week, with the proportion of vealers in the market lifting from 60% last week to over 75% this week.
On the national categories there was a mixed bag of results, with restocker prices pushing up 20¢(3%) to 749¢/kg lwt, however, processor steer and medium steer prices backtracked 1%.
However, when looking at the makeup of the processor steer indicator, given that the index currently only covers prices from 50 odd head across 8 saleyards, the price should be looked at with a significant grain of salt. On the restocker side, similar to the EYCI, QLD saleyards such as Roma, Gracemere and Dalby dominate the price, collectively making up 70% of the index. Gracemere booked a steep 784¢/kg lwt this week, 5% above the national indicator value.
The US frozen cow 90CL price has continued to climb, adding another 5¢(<1%) to reach 924¢/kg swt. The latest Steiner report comments that lack of product from Australian and NZ have kept grinding beef price extremely firm, and that it is expected that the days of cheap Brazilian beef will be over shortly, as early as the end of Q1, when the Most Favoured Nation (MFN) quota of 65,000 tonnes is filled, and a 26.5% tariff is applied. In addition, the domestic cull rate of US cows and bulls is moving at blistering pace that is starting to rival some of the biggest cattle liquidations in US history.
QLD demand pushes restockers higher
East coast slaughter numbers tracked upwards a net 3% last week, with QLD and NSW leading the way, both booking 4% lifts, whilst the tassie kill shot up 65%, however numbers slackened 15% in VIC, pulling down the final net result.
Overall east coast yardings inched up 1% last week, but the 13% and 21% weekly increments booked by NSW and VIC were offset by a 15% fall in QLD offerings. Supply is still historically low though, at 22% off the pace of what was seen this time last year.
However, EYCI yardings of 14,469 head this week, up 22% from last week are indicative that we might see a strong lift in yardings for this week when the data is released.
The EYCI rose by 8¢ (<1%) to 1,128¢/kg cwt, rebounding from last week’s minor reversal. Roma store lead the way, contributing 20% to the weekly index, at 1147¢/kg cwt, followed by Dalby at 14%, with 1168¢/kg cwt the average price of cattle there.
Over in the west, the WYCI lifted 23¢(2%) to 1,111¢/kg cwt, on a solid yarding of 953 head, up 310% from the prior week, with the proportion of vealers in the market lifting from 60% last week to over 75% this week.
On the national categories there was a mixed bag of results, with restocker prices pushing up 20¢(3%) to 749¢/kg lwt, however, processor steer and medium steer prices backtracked 1%.
However, when looking at the makeup of the processor steer indicator, given that the index currently only covers prices from 50 odd head across 8 saleyards, the price should be looked at with a significant grain of salt. On the restocker side, similar to the EYCI, QLD saleyards such as Roma, Gracemere and Dalby dominate the price, collectively making up 70% of the index. Gracemere booked a steep 784¢/kg lwt this week, 5% above the national indicator value.
The US frozen cow 90CL price has continued to climb, adding another 5¢(<1%) to reach 924¢/kg swt. The latest Steiner report comments that lack of product from Australian and NZ have kept grinding beef price extremely firm, and that it is expected that the days of cheap Brazilian beef will be over shortly, as early as the end of Q1, when the Most Favoured Nation (MFN) quota of 65,000 tonnes is filled, and a 26.5% tariff is applied. In addition, the domestic cull rate of US cows and bulls is moving at blistering pace that is starting to rival some of the biggest cattle liquidations in US history.
The week ahead….
Strong volumes of EYCI eligible cattle offered to the market this week, combined with the price of restocker steers holding ground, particularly in the key state of QLD are indicative of good underlying demand and producer confidence. As such, seeing more resilience in prices next week would not be a surprise.
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?
Heavy cattle grabbing attention
The search for weight continues as buyers bid strongly for heavier cattle. With the supply agenda set by Meat & Livestock Australia last week, confidence
Is the herd turn enough to lift prices
The Meat and Livestock Australia (MLA) Cattle Projections released last week have confirmed the theory that we are seeing peak cattle herd now, and supply
Hot August sees supply build in September
The BOM declared August as the hottest on record, for Northern East Coast producers it created ideal fattening conditions and allowed unimpaired movement of stock.
Herd hits cyclical high
Meat and Livestock Australia’s latest industry projections have Australia’s beef cattle herd having reached its maturity, with numbers now back on the decline. This assumption
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.
Research: Analysis of the Australian sheep flock
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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.