Prices were down for the majority of indicators as a result of an increase in supply as farmers looked to capitalise on the rally seen through July. Buyers' attendance remains strong with many saleyard reports talking to full fields. Softer prices at the rail were enough to get the restockers bidding.
The Eastern States Young Indicator fell slightly by 2% to
659 c/kg for the first full selling week of August. Yardings for the indicator
increased by 31% on the week prior. Roma topped the charts for the largest
contribution but averaged below the indicator at 349 c/kg.
Dalby is in second place for contribution and also below the
indicator at 650 c/kg, with its saleyard report mentioning cattle drawn from
NSW and even SA! Restockers overtook the feedlotters as the largest buying
group this week compared to last as optimism in the market grows in regards to the
spring outlook, and the margin for feedlotters gets further squeezed with the
recent price gains.
Processor cows were in line with last week, finishing the
week down 1% at 271 c/kg, despite a 16% reduction in the yardings for the
indicator. Roma and Dalby again in first and second for the largest
contribution.
Heavy Steers fell the most for the week, down 6% on the week
prior following a 34% increase in yardings. Victorian saleyards were able to
achieve the highest average prices for the week with Leongatha (390 c/kg). This
shows the tightness of supply on the southeast coast compared to further north
where there is more available cattle for processors to choose from. This is why
sometimes at this time of year it’s not out of place to see a QLD saleyard
report mention the presence of a Victorian processor.
Slaughter levels for the week prior were flat on the
previous week, and it appears to be operating at its newfound level of
capacity. The average weekly cattle slaughter on the East Coast for the last 10
weeks has been 137k head per week, the 5-year average for the same 10 weeks is
113.6k head, a 21% increase this year. This increase in capacity is helping
support prices especially buoyed by a robust export market. Jan – July total
beef exports for Australia are 27% higher than for the same period last year.
Initial yardings data from the NRLS show an increase in
cattle yarding for the week of 9% to a total of 67.4k head. It is a 30%
increase in yardings for the east coast compared to the same selling week in
2023.
Next week
Supply may ease as the prices come off from the rises of July with producers opting to get some more weight on their cattle to command a higher price. Slaughter levels will remain at this level especially if the price of indicators continues to fall, increasing processor margins.
The search for weight continues as buyers bid strongly for heavier cattle. With the supply agenda set by Meat & Livestock Australia last week, confidence
The Meat and Livestock Australia (MLA) Cattle Projections released last week have confirmed the theory that we are seeing peak cattle herd now, and supply
The BOM declared August as the hottest on record, for Northern East Coast producers it created ideal fattening conditions and allowed unimpaired movement of stock.
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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.
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Rally retrace helps restockers
The Eastern States Young Indicator fell slightly by 2% to 659 c/kg for the first full selling week of August. Yardings for the indicator increased by 31% on the week prior. Roma topped the charts for the largest contribution but averaged below the indicator at 349 c/kg.
Dalby is in second place for contribution and also below the indicator at 650 c/kg, with its saleyard report mentioning cattle drawn from NSW and even SA! Restockers overtook the feedlotters as the largest buying group this week compared to last as optimism in the market grows in regards to the spring outlook, and the margin for feedlotters gets further squeezed with the recent price gains.
Processor cows were in line with last week, finishing the week down 1% at 271 c/kg, despite a 16% reduction in the yardings for the indicator. Roma and Dalby again in first and second for the largest contribution.
Heavy Steers fell the most for the week, down 6% on the week prior following a 34% increase in yardings. Victorian saleyards were able to achieve the highest average prices for the week with Leongatha (390 c/kg). This shows the tightness of supply on the southeast coast compared to further north where there is more available cattle for processors to choose from. This is why sometimes at this time of year it’s not out of place to see a QLD saleyard report mention the presence of a Victorian processor.
Slaughter levels for the week prior were flat on the previous week, and it appears to be operating at its newfound level of capacity. The average weekly cattle slaughter on the East Coast for the last 10 weeks has been 137k head per week, the 5-year average for the same 10 weeks is 113.6k head, a 21% increase this year. This increase in capacity is helping support prices especially buoyed by a robust export market. Jan – July total beef exports for Australia are 27% higher than for the same period last year.
Initial yardings data from the NRLS show an increase in cattle yarding for the week of 9% to a total of 67.4k head. It is a 30% increase in yardings for the east coast compared to the same selling week in 2023.
Next week
Supply may ease as the prices come off from the rises of July with producers opting to get some more weight on their cattle to command a higher price. Slaughter levels will remain at this level especially if the price of indicators continues to fall, increasing processor margins.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
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Where are we with the FSR?
The female slaughter rate (FSR) is one of the key figures used to demonstrate what is happening with the Australian beef cattle herd. There has
Heavy cattle grabbing attention
The search for weight continues as buyers bid strongly for heavier cattle. With the supply agenda set by Meat & Livestock Australia last week, confidence
Is the herd turn enough to lift prices
The Meat and Livestock Australia (MLA) Cattle Projections released last week have confirmed the theory that we are seeing peak cattle herd now, and supply
Hot August sees supply build in September
The BOM declared August as the hottest on record, for Northern East Coast producers it created ideal fattening conditions and allowed unimpaired movement of stock.
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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.
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.
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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.