Buyers and sellers continue to lean into a rising market as the supply outlook is re-assessed. Cattle prices rose across the board this week, with the market edging closer to year-ago levels for some categories.
The Eastern Young Cattle Indicator (EYCI)
picked up an additional 23¢/kg cwt this week to settle at 667¢/kg cwt. The
biggest numbers came out of Wagga this week, but it was the Roma Store sale
that turned the best results with EYCI eligible cattle averaging 737¢/kg cwt on
account of reduced numbers due to inclement weather.
The northern feeder market has been
impacted by widespread rain and flooding in large parts of Queensland. Saleyard
throughput in Queensland almost halved this week compared to last. According to
Argus, “most feedlots are behind on purchases and are continuing to see yard
volumes decrease as they struggle to match weekly arrivals with exits”. The
backlog along the chain is also driving processors back into the market to
secure numbers for the month.
A well-supported grinding beef market is
flowing through to processor cow demand. The National Processor Cow Indicator
has risen 90% since the October lows and is currently sitting at 489¢/kg cwt
which is just 20¢ shy of year-ago levels. With the rate the US is buying up
Australian grinding beef after holidays and winter storms created a shortfall,
this is no surprise. However, reports from Steiner suggest that US feedlot
supplies are higher than a year ago so the pressure may come off in 3-4 months.
Slaughter remains elevated compared to last
year but is tracking shy of five-year average levels. With the short week for
the public holiday, eastern state slaughter declined 18% last week compared to
the week prior.
Next week
There are signs that a local supply squeeze may be coming later in Autumn, especially if the season proves kind. In the near term once supply starts to move again from the north the extra volumes may ease pressure on the market, however, we expect demand to remain supportive.
The long-predicted slowdown in US beef production has seemingly come into play this year, and Australian beef is filling some of the production gaps. Total
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.
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.
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.
QLD weather causes a kink in the chain
Next week
There are signs that a local supply squeeze may be coming later in Autumn, especially if the season proves kind. In the near term once supply starts to move again from the north the extra volumes may ease pressure on the market, however, we expect demand to remain supportive.
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?
Export buyers out of office
With the nation stopping yesterday to commemorate ANZAC Day, Thursday livestock sales did not take place. As a result, this week saw a decrease in
Cattle price volatility lower as supply and demand find balance
Cattle market volatility has waned recently. The wild swings of 2023 saw prices move up to 70% across the course of two months. Thus far
Weather whiplash creates erratic cattle market
Roads and paddocks have begun to dry out allowing the backlog of cattle from soaked areas of Queensland and New South Wales to hit the
US herd build provides a boost
The long-predicted slowdown in US beef production has seemingly come into play this year, and Australian beef is filling some of the production gaps. Total
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.