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.
Australian beef exports have steamed through March coming in just shy of 150,000, making it the second-highest monthly export volume on record. Consistently strong supply
After the easter break the uneven balance of yardings and slaughter numbers typically mask underlying sentiment of the market. Uncertainty of diesel costs and wide-ranging
The Meat and Livestock Australia (MLA) Cattle Industry projections were released last week. The Industry Projections are an important outlook for cattle supply, being herd
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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.
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Data sources: Mecardo; Meat and Livestock Australia
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Chinese deadline pushes exports higher as EU FTA disappoints
Australian beef exports have steamed through March coming in just shy of 150,000, making it the second-highest monthly export volume on record. Consistently strong supply
Short week, minor decline
After the easter break the uneven balance of yardings and slaughter numbers typically mask underlying sentiment of the market. Uncertainty of diesel costs and wide-ranging
Relating cattle supply to price
The Meat and Livestock Australia (MLA) Cattle Industry projections were released last week. The Industry Projections are an important outlook for cattle supply, being herd
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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.
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.
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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.