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 throw a spanner in the works for processor buyers.
This week saw improvement across the board for all indicators, helped in part by the third week in a row of declining numbers in the yards. Indicative NLRS yardings report 58,162 head yarded, the lowest since early August.
Between rainfall and harvest, there have been plenty of reasons to keep cattle back home, and the market is responding. Indicators averaged 12¢ to 39¢ improvement this week, with heavy steers averaging just an 8¢ increase to 442¢/kg lwt. The Eastern Young Cattle Indicator (EYCI) rose 19¢ to 863¢/kg cwt.
Per MLA saleyard reports, the majority of sales saw a stronger market. Storms impacted numbers at Roma but there was strong interest in better lines of cattle. Victorian restockers made the trip to Wagga to see the increase in heavy cattle and bid accordingly. Dubbo saw an increased yarding of younger cattle, which found upward momentum in pricing.
It’s been full steam ahead for slaughter, with last week’s weekly figure still eclipsing 155K head nationally. This bodes well for prices as rain has reached Victoria, and restocker interest will be paramount to price support.
This week on Mecardo, Jamie-Lee Oldfield had a look at restocker resurgence and the impact on cow prices (Read more here). There is currently little dividing the processor and restocker price when it comes to cows, making trading an empty one for a pregnant one a fairly attractive proposition for producers, particularly if the southern season begins to improve.
Next week
Expectations would be for supply to tick higher in the coming weeks as sellers look to capitalise on rainfall and current prices. After spending nine months sending cattle north, restockers in the south will begin to toss their hat in the ring.
A historically high cattle market has pushed cattle-on-feed numbers lower for the September quarter. Confidence in the sector has far from waned, however, with capacity,
National cattle yardings jumped 13% week-on-week, unsurprisingly putting downward pressure on prices, but the market still showed a level of resilience considering the increase 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.
Restockers emerging in the South?
This week saw improvement across the board for all indicators, helped in part by the third week in a row of declining numbers in the yards. Indicative NLRS yardings report 58,162 head yarded, the lowest since early August.
Between rainfall and harvest, there have been plenty of reasons to keep cattle back home, and the market is responding. Indicators averaged 12¢ to 39¢ improvement this week, with heavy steers averaging just an 8¢ increase to 442¢/kg lwt. The Eastern Young Cattle Indicator (EYCI) rose 19¢ to 863¢/kg cwt.
Per MLA saleyard reports, the majority of sales saw a stronger market. Storms impacted numbers at Roma but there was strong interest in better lines of cattle. Victorian restockers made the trip to Wagga to see the increase in heavy cattle and bid accordingly. Dubbo saw an increased yarding of younger cattle, which found upward momentum in pricing.
It’s been full steam ahead for slaughter, with last week’s weekly figure still eclipsing 155K head nationally. This bodes well for prices as rain has reached Victoria, and restocker interest will be paramount to price support.
This week on Mecardo, Jamie-Lee Oldfield had a look at restocker resurgence and the impact on cow prices (Read more here). There is currently little dividing the processor and restocker price when it comes to cows, making trading an empty one for a pregnant one a fairly attractive proposition for producers, particularly if the southern season begins to improve.
Next week
Expectations would be for supply to tick higher in the coming weeks as sellers look to capitalise on rainfall and current prices. After spending nine months sending cattle north, restockers in the south will begin to toss their hat in the ring.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: Mecardo; Meat and Livestock Australia
Categories
Have any questions or comments?
Most markets resilient against high supply
With only one more trading week left before the major holiday break of the year, and processors likely already filling up or slowing down, producers
Weaner sales upside hanging on northern rain
We are still a month away from the annual January weaner sales, so it is a little difficult to make any bold statements about how
Capacity growth signals confidence in lotfeeding
A historically high cattle market has pushed cattle-on-feed numbers lower for the September quarter. Confidence in the sector has far from waned, however, with capacity,
Restockers show support in the north
National cattle yardings jumped 13% week-on-week, unsurprisingly putting downward pressure on prices, but the market still showed a level of resilience considering the increase in
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.