Slaughter numbers slipped back for the first time in the last month, retreating 4% week on week to 96,716 head. Almost all of the reduction came from QLD, with the other states only posting minimal changes.
East coast yardings rose 13% last week, to reach 54,113 head, which was in the general direction we expected. The continuing increase in supply last week emanated from the north, with QLD booking the majority of the increase. The early indicator of the EYCI yardings posting a fall this week suggests that this week’s yardings data will display a more subdued tone when the numbers are released.
The Eastern states Young Cattle Indicator (EYCI) slipped back 5¢(<1%) from last weeks close to 1,068¢/kg cwt. Eligible young cattle yardings dropped 18% to 13,787 head. A reduction like this usually indicates that cattle supply of all specifications in the greater market may have fallen, however, 14k is still a relatively high absolute number, so it is more likely to be a signal of flat to reduced growth in supply attributed to this week.
Key EYCI contributor markets were another mixed bag this week, with Roma Store prices down 2% to 1,070¢/kg cwt despite 16% lower yardings, and Wagga Wagga followed suit, down 2% to 1,080¢/kg cwt, also posting 14% lower yardings.
However, Dalby prices lifted 3% to 1,060¢/kg cwt, buoyed by a 47% fall in offerings, and Dubbo prices lifted 3%, to 1,080¢/kg in line with a 12% reduction in yardings.
The national indicators all posted gains, with the exception of Restocker steers, which backtracked 1%. In contrast, Processor and Heavy Steer prices both lifted 4%. Looking deeper into prices at a state level, there is a bit of a tale of two cities going on. Restocker prices fell marginally in QLD, yet rocketed up 96¢(16%) in VIC to reach 596¢/kg cwt, with medium steers and processor steer also booking gains of 5% week on week. On the slaughter ready cattle side, VIC medium cow prices also fell almost 7% and heavy steers slipped 2%. Meanwhile in QLD, all finished cattle specifications made moderate gains. These contrasting price movements suggest that interest for Restocker animals in the south may be relatively stronger than in the north at present.
90CL frozen cow prices tracked up 1¢(<1%) last week to close at 815¢/kg swt, with the appreciation in the AUD dampening the impact of a lift in the price in US dollar terms of 3¢ to 278¢/lb. Steiner reports that the market for lean beef has ticked up in response to concerns in the trade about expected availability and pricing levels in the front end of next year. These are mostly centred around the expectation of lower domestic US supply in the short to medium term.
The Aussie dollar fell 1.6% from its recent high perch to 0.740US. Reports of a worsening COVID-19 outbreak in China, and economic concerns weighed on the market.
Restockers a Tail of two Cities
Slaughter numbers slipped back for the first time in the last month, retreating 4% week on week to 96,716 head. Almost all of the reduction came from QLD, with the other states only posting minimal changes.
East coast yardings rose 13% last week, to reach 54,113 head, which was in the general direction we expected. The continuing increase in supply last week emanated from the north, with QLD booking the majority of the increase. The early indicator of the EYCI yardings posting a fall this week suggests that this week’s yardings data will display a more subdued tone when the numbers are released.
The Eastern states Young Cattle Indicator (EYCI) slipped back 5¢(<1%) from last weeks close to 1,068¢/kg cwt. Eligible young cattle yardings dropped 18% to 13,787 head. A reduction like this usually indicates that cattle supply of all specifications in the greater market may have fallen, however, 14k is still a relatively high absolute number, so it is more likely to be a signal of flat to reduced growth in supply attributed to this week.
Key EYCI contributor markets were another mixed bag this week, with Roma Store prices down 2% to 1,070¢/kg cwt despite 16% lower yardings, and Wagga Wagga followed suit, down 2% to 1,080¢/kg cwt, also posting 14% lower yardings.
However, Dalby prices lifted 3% to 1,060¢/kg cwt, buoyed by a 47% fall in offerings, and Dubbo prices lifted 3%, to 1,080¢/kg in line with a 12% reduction in yardings.
The national indicators all posted gains, with the exception of Restocker steers, which backtracked 1%. In contrast, Processor and Heavy Steer prices both lifted 4%. Looking deeper into prices at a state level, there is a bit of a tale of two cities going on. Restocker prices fell marginally in QLD, yet rocketed up 96¢(16%) in VIC to reach 596¢/kg cwt, with medium steers and processor steer also booking gains of 5% week on week. On the slaughter ready cattle side, VIC medium cow prices also fell almost 7% and heavy steers slipped 2%. Meanwhile in QLD, all finished cattle specifications made moderate gains. These contrasting price movements suggest that interest for Restocker animals in the south may be relatively stronger than in the north at present.
90CL frozen cow prices tracked up 1¢(<1%) last week to close at 815¢/kg swt, with the appreciation in the AUD dampening the impact of a lift in the price in US dollar terms of 3¢ to 278¢/lb. Steiner reports that the market for lean beef has ticked up in response to concerns in the trade about expected availability and pricing levels in the front end of next year. These are mostly centred around the expectation of lower domestic US supply in the short to medium term.
The Aussie dollar fell 1.6% from its recent high perch to 0.740US. Reports of a worsening COVID-19 outbreak in China, and economic concerns weighed on the market.
The week ahead….
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo, BOM
Categories
Have any questions or comments?
Northern restocker conquest pushes heifers higher
As seen this week when supply tightens at the yards, young cattle prices spike upward in the current climate. The Eastern Young Cattle Indicator improved
Lotfeeders making hay
The cattle lotfeeding sector has been experiencing huge growth over the last few years. The September quarter saw growth in cattle on feed (COF) numbers
Market moves focus as we wait for the weather
With substantial rainfall on the radar and the holiday season right around the corner, the focus of the cattle market has swung away from finished
Big turnoff not a turnoff for beef
The latest data release from the Australian Bureau of Statistics on livestock products has shown that our beef cattle herd is well and truly into
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.
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.
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.