Rain forcing slaughter cattle higher

Dark,Storm,Clouds,Over,The,Mountains,Bring,A,Promise,Of

Normally when we have flooding events impacting livestock yarding and transport it is confined to a region. Over the last two week’s we have seen almost the whole east coast inundated, and while there are still plenty of areas that can get cattle out, there is little motivation, it has to come from price.

It was interesting to see cattle yardings up last week, but it might be a different story this week.  Processors have ramped up prices at saleyards to try and secure cattle to fill kills. Supply is being interrupted by floods and rain, and as such we saw some moves at saleyards this week.

The Eastern Young Cattle Indicator (EYCI) gained 10ȼ for the week, bouncing to 1041ȼ/kg cwt.  This was driven by trade cattle, with restockers and feeders taking a back seat.

The big moves were in heavier slaughter cattle.  The Eastern States Heavy Steer Indicator gained back most of last week’s fall to move back to the top of the range, close to 900ȼ/kg cwt.  The National Medium Cow Indicator also jumped in most states, but was dragged down by 10ȼ by WA to 643ȼ/kg cwt.

Figure 1 shows the narrowing of the spread between the EYCI and slaughter cattle indicators over the past six months.  The wet year is impacting supply of finished cattle, while demand for young cattle from restockers has waned. 

From a historical perspective the EYCI is still at a very strong premium, but it’s well down on this time last year.

The week ahead….

When rains ease (if they ever do) we should see improving supply of finished cattle, and stronger demand for young cattle.  The returns from backgrounding remain very good, and grass growth following the rains should be strong, bringing a bit of grass fever with it.

The coming weeks might be a good time to quit finished cattle, if you can get a truck in, and yards can handle the traffic of course.

Have any questions or comments?

We love to hear from you!
Print This Post

*No slaughter data available at time of publishing. 

Click on graph to expand

Click on graph to expand

Data sources: MLA, Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!
Northern bos indicus cattle in yard
Cattle

Someone let the bulls out

It could’ve been a post Beef Week high, or an adjustment in demand but this week’s market exuded a higher level of confidence. Sellers were

Read More »

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

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
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.

Photo of a farmer surrounded by Merino sheep in dusty yards
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. 

Image of harvested grain pouring into a chaser bin
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.