Rain ramps up restocker activity

That demand was evident with the Eastern Young Cattle Indicator, which jumped nearly 47¢/kg this week. It’s now at 879¢/kg, close to 97¢/kg higher than it was four weeks ago, and at its strongest figure for the past two months. Roma, Queensland, yarded 27% of national EYCI but still averaged above the indicator at 887¢/kg after decent rain in the area, and the National Livestock Reporting Service reported all categories except cows as trending dearer, with an extra southern buyer active.

In NSW young cattle averaged 894¢/kg, with Wagga Wagga yarding 21% of the state’s throughput and sitting at 941¢/kg. NLRS quoted export and domestic buyers as selective, but lot feeders and restockers from the north were out in force. Restocker yearling heifers rose 42¢/kg for the week to just shy of 402¢/kg, and this time Roma had nearly half of all stock eligible for the indicator and averaged well above the national price at 420¢/kg, with the heavier 280-330kg portion up to 429¢/kg.

The 90CL US imported beef price remains elevated, and despite the national processor cow indicator losing 6¢/kg this week it still sits at a historically firm 351¢/kg. Feeder steers lifted about 7¢/kg, while all other major national indicators rose between 14-17¢/kg. Cattle yardings, at 62,500 head, was the smallest number for a full five-day week since early November last year, with NSW dropping below Meat & Livestock Australia’s three-year rolling average for the first full week in that same period. 

The strength of the section on both the supply and demand side so far this year, despite the recent dip, were reiterated by new ABS and ALFA data this week. It showed the highest first quarter beef production on record from January to March, up 8% year-on-year, and the highest quarterly production in Victoria ever. Aligning with this was total cattle slaughter which rose 6% year-on-year, and record quarterly fed cattle turn-off, which rose 11% from December to March and reached over a million head.