Restocker prices rally, while heavy cattle tumble.

Cattle in saleyard

After several weeks of falls, the cattle market has stabilised somewhat, with the EYCI rising, restocker prices recovering and processor steers making some token gains - however, heavy steer prices have started heading into an abyss.

Yardings numbers for last week were a surprise given the solid price falls seen, with the number of cattle offered in freefall, down 29% compared to the prior week. The slowdown was coming out of QLD, where numbers dropped a massive 45% week on week, followed by NSW and Vic which respectively clocked in falls of 21%, and 7%.

Overall, yardings fell by 18,369 head compared to the week prior, with 44,409 cattle yarded on the east coast for the week ending 4th December, 34% below last year’s figures.

Slaughter picked up again, putting on an extra 5%, with the lions share of the increment coming from QLD, which saw almost a 5% increase in throughput, backed up by a 2% rise in VIC, and 1% in NSW.

Overall, a total of 115,048 cattle were processed on the east coast for the week ending the 4th December, 28% off the pace of last year.

After several weeks of losses, the EYCI has stabilised, inching up 1¢ (<1%) to end the week at 791¢/kg cwt.

On the categories, there’s two opposing stories to tell, with National restocker steer prices recovering strongly, but heavy steer prices booking a substantial fall. Interestingly, looking at the state based indicators, the restocker positivity appears to be emanating out of QLD and NSW, while in VIC, prices fell across the board, and the main downward pressure on heavy steers seems to be coming out of NSW, where prices are 8% that of QLD.

Restocker steer prices recovered by 19¢ (4%) to end the week at 486¢/kg lwt, while heavy steers went in the opposite direction, falling 21¢ (-6%) to close off at 336¢/kg lwt.

Processor and feeder steers made some small, but welcome incremental gains for the week, respectively adding 3¢ (<1%) and 1¢ (<1%) to finish at 405¢/kg lwt and 418¢/kg lwt.

Medium cow and medium steer prices fell marginally, to lose 2¢ (-1%) and 1¢ (<-1%), closing off at 266¢/kg lwt and 355¢/kg lwt, while vealers sank 7¢ (-2%) to 433¢/kg lwt.

The Aussie dollar just keeps on rising, up another 1.5% this week, to reach 0.753US. The driver this week has been weakness in the US dollar stemming from concerning jobless claims statistics and continued political wrangling over the form of US stimulus packages. 90CL US frozen cow prices have showed strength, despite the rising dollar, putting on 2¢ (<1%) to end the week at 647¢/kg swt.

The week ahead….

The rainfall outlook for next week is looking a lot more substantial, with southern and central QLD set to receive a very welcome 5-10mm and a solid band of 10-50mm extending from central NSW and VIC across to the coast. The massive drop in yardings seen last week was quite unusual for this time of year, and the number of cattle on offer on the east coast for this time of year has not been so low since around 2009, particularly in VIC and NSW. With some evidence of rainfall coming through to QLD now, and heightened prices this week, it looks doubtful that numbers on offer will increase next week.

Have any questions or comments?

We love to hear from you!

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: MLA, BOM, 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!
Cattle

Rain and Restockers return

A short selling week saw yardings down significantly, all cattle indicators had a lift in prices on the back of tighter supply. An increase in

Read More »
Cattle in feedlot
Cattle

Feed pens fuller yet again

Volatile market conditions for cattle didn’t scare the lot feeding sector into submission last year with yet more growth recorded for the final quarter. The

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.