Quality improves to keep prices hovering at highs

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Cattle prices continue to hover around the recent highs as buyers continue to queue up for cattle making their way to the yards.  Easing supply and improved quality of the cattle available at the yards helped to insulate the market from price declines this week.

Indicators traded within a narrow range this week, ranging from 8¢ declines (restocker steers at 477¢/kg lwt) to 11¢ gains (processor cows). The Eastern Young Cattle Indicator (EYCI) lost 1¢ to 896¢/kg cwt. The Western Young Cattle Indicator (WYCI) jumped 26¢ to 789¢/kg cwt.

 

Supply through the yards was 1% lower week on week, with the decline in numbers driven by fewer numbers in NSW.  Per MLA saleyard reports, southern buyers met an increased cow yarding in Dalby, and restockers paid slightly higher for stock heading back to the paddock. Roma buyers were chasing quality as lightweight weaner bids eased. Feeder cattle were dearer in Gunnedah and Wagga buyers were chasing feeder types with strong competition.

 

This week on Mecardo, Jamie-Lee Oldfield dived into exports, which continue to fly (read more here). Australian beef exports to South Korea hit a monthly record in August, increasing 18% year-on-year, and 36% more than the five-year average for the month. Year-to-date volumes are now up 17% from 2024, and this means we could have already hit the trade agreement safeguard quota, with remaining exports to this market now subject to a 24% tariff.  Meanwhile, American cow slaughter is 20% lower YoY and Australian beef exports to the US are up 22% YoY. 

Next week

90CL beef into the US sits at 1109AU¢/kg, the 6th consecutive week above the $11/kg mark and from a global trade perspective it’s been quiet on the trade policy front (for now).

With demand prospects likely to track sideways, supply will be the tipping point for prices from recent highs.

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Data sources: MLA, Mecardo

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