Easing supply had a role to play; however, heavier saleyard offerings and channel country rainfall have gotten the ball rolling on demand once again in cattle markets this week. Queensland remains the driver of the market, and the scales have tipped in favour of demand once again.
Feeder steers were in hot demand in Dalby due to the decline in numbers and travelling southern processors. Intense bidding and a big yarding of heavier stock in Wagga contributed to processors and feeders pushing values higher. This competitive spirit continued in Dubbo, where cows remained the belle of the ball.
Gains across national indicators ranged from 9¢ for Restocker heifers to 24¢ for Heavy Steers. Processor cow indicators improved 18¢ to 286¢/kg cwt. The Eastern Young Cattle Indicator (EYCI) improved 14¢ to 660¢/kg cwt.
Southwest Queensland has been inundated with rainfall, with widespread flooding likely to impact a significant expanse of station country. Flood warnings are in place from Tropical North Queensland down through the channel country. Major flooding is impacting communities near Quilpie, and our thoughts are with those in the area as we hope for minimal damage and stock losses.
From a market perspective, the rainfall will likely underpin restocker demand and put in a pin in many producers’ plans to turn off stock in the coming few months after hot dry conditions had begun to impact pastures in Queensland cattle country. Oat crops had already begun to be planted and will likely ramp up in response to this rainfall.
Northern feeder markets are likely to also benefit from the big wet, and all signs are pointing in the right direction for the live cattle export sector to continue to strengthen this year, per Jamie-Lee Oldfield on Mecardo this week (read more here). Whilst at current pricing, larger volumes to Vietnam and China aren’t as likely, but new interest from the Philippines and a strong start to this year for Indonesia bodes well for the trade.
Next week
Logistically and strategically, expectations are for fewer head to make it to the yards in northern NSW and Queensland. Easing supply and supportive rainfall should see competition amongst feeders and processors ramp up.
Trump’s tariffs come into place (in theory at the time of writing) next week. ‘Will they or wont they’ speculation has been impacting importers in the US who are unsure of whether they should price in the tariff for near-term deliveries. This hasn’t stopped the upward momentum of 90CL pricing, which now sits at 1079¢/kg and is 16% higher YoY.
With rain falling in parts of southern Australia in recent days, and more set to follow, there could be increased opportunity for restocker movement in
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.
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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.
Rain makes oats, oats makes gains
Feeder steers were in hot demand in Dalby due to the decline in numbers and travelling southern processors. Intense bidding and a big yarding of heavier stock in Wagga contributed to processors and feeders pushing values higher. This competitive spirit continued in Dubbo, where cows remained the belle of the ball.
Gains across national indicators ranged from 9¢ for Restocker heifers to 24¢ for Heavy Steers. Processor cow indicators improved 18¢ to 286¢/kg cwt. The Eastern Young Cattle Indicator (EYCI) improved 14¢ to 660¢/kg cwt.
Southwest Queensland has been inundated with rainfall, with widespread flooding likely to impact a significant expanse of station country. Flood warnings are in place from Tropical North Queensland down through the channel country. Major flooding is impacting communities near Quilpie, and our thoughts are with those in the area as we hope for minimal damage and stock losses.
From a market perspective, the rainfall will likely underpin restocker demand and put in a pin in many producers’ plans to turn off stock in the coming few months after hot dry conditions had begun to impact pastures in Queensland cattle country. Oat crops had already begun to be planted and will likely ramp up in response to this rainfall.
Northern feeder markets are likely to also benefit from the big wet, and all signs are pointing in the right direction for the live cattle export sector to continue to strengthen this year, per Jamie-Lee Oldfield on Mecardo this week (read more here). Whilst at current pricing, larger volumes to Vietnam and China aren’t as likely, but new interest from the Philippines and a strong start to this year for Indonesia bodes well for the trade.
Next week
Logistically and strategically, expectations are for fewer head to make it to the yards in northern NSW and Queensland. Easing supply and supportive rainfall should see competition amongst feeders and processors ramp up.
Trump’s tariffs come into place (in theory at the time of writing) next week. ‘Will they or wont they’ speculation has been impacting importers in the US who are unsure of whether they should price in the tariff for near-term deliveries. This hasn’t stopped the upward momentum of 90CL pricing, which now sits at 1079¢/kg and is 16% higher YoY.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo and BOM
Categories
Have any questions or comments?
Restockers emerging in the South?
Supply has been easing to the yards during harvest, which has provided support for the market so far, but emerging restockers from the south might
Season shores up cow price
With rain falling in parts of southern Australia in recent days, and more set to follow, there could be increased opportunity for restocker movement in
Rain slows supply, restockers ramp up
Cattle yardings fell to their lowest levels in two months this week, which helped push prices higher right across the board. Rainfall over the past
A cattle slaughter peak is coming?
With October coming to an end, it’s usually a time of increasing cattle supply and slaughter rates. Historically, this ties in with weaker prices, but
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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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.