The Eastern Young Cattle Indicator (EYCI) made some gains on
the previous week, finishing the final selling week of March at 600c/kg cwt. The
increase was driven by the decrease in throughput for the indicator with the
yardings down by 50% to 7.1k head. Another contributing factor to the decrease
was from the strong rain in the QLD and Northern NSW, with producers choosing
to hold onto stock. Restockers were keen to re-enter the market off the back of
the rain buying.
The other indicators all followed suit, with yardings down
by roughly half and the prices rising slightly across the board. Saleyard
reports talk of strong demand from restockers, particularly those based in the
north. Processors and feeders were still present at the auctions, although some
were not active this week. Heavy Steers saw the biggest lift in price compared
to Friday last week, ending this week at 304c/kg, up 10% (28c/kg). Restocker
Heifer, Steer, Dairy and Feeder indicators all rose between 3-5% in terms of
price compared to Friday the week before.
East Coast Slaughter levels continue to remain above the 5-year
average levels, for the week ending the 22nd of March the volume of
slaughter was 17% above the 5-year average and 19% what it was in the prior
year. Despite some recent reports of a decrease in processors’ involvement in
the market, they are still operating close to capacity.
Yardings this week were down 67% on the week on the week
prior, with one less selling day and some other sales not taking place this was
expected. The rainfall in the northern parts of the East Coast also renewed the
confidence and optimism of producers who will hold onto stock as opposed to
selling them.
Beef exports to the United States remain at elevated levels,
as the US continue to destock their domestic herd as they reach their lowest
herd population in the past 50 years. Per Steiner, in the first quarter of 2024,
beef exports to the US are projected to have increased by 83% compared to Q1
for 2023.
Rain and Restockers return
Next week
Another short-selling week following the Easter long weekend should see a similar result to this week with below-average yardings causing supporting prices. There is some rain forecast for the East Coast according to BOM, if it falls this should continue to ease the concerns over feed for some producers, creating more upside on prices.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Steiner Consulting Group, Mecardo
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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
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