Whilst those in charge of mowing lawns aren’t happy with this continuous rain – producers with mouths to feed are very happy with the conditions, and it’s showing in the prices paid for cattle in saleyards and online. AuctionsPlus reported “competition is again anticipated to be fierce” in today’s sales (Friday 3rd December, 2021), with a “34% weekly increase in auction participants” last week on their platform, evidence of the strong demand coming from producers at the moment.
Taking a look at the top saleyards contributing to the Eastern States Young Cattle Indicator (EYCI), again it was the Roma store sales contributing the most head of cattle (17%) and at the highest average price too, at 1192¢/kg cwt. Dubbo and Wagga were the next highest contributors at 13 & 11% respectively and average cattle prices were 1082¢/kg cwt in Dubbo and 1101¢/kg cwt in Wagga.
The EYCI is still over the 1,100¢ mark, finishing the week at 1,107¢/kg cwt. Over in the west, the Western Young Cattle Indicator (WYCI) is at 1143¢/kg cwt, with less than 1,500 head the total 7-day rolling average on offer there.
Looking at the National Indicators it was the Restocker Yearling Steers ruling the market again, up 17 cents (2.9%) on the week prior to settle at 728¢/kg lwt. The Medium Steer indicator also rose by 3%, up 15 cents on the week prior, to finish at 505¢/kg lwt. The Feeder & Heavy Steer indicators both lifted by 2% to finish at 562¢/kg lwt and 470¢/kg lwt respectively.
Meanwhile, Processor Yearling Steers fell 8 cents to 532¢/kg lwt and the Vealer Steer dropped by 6 cents to 633¢/kg lwt.
With grass fever running high and not looking like slowing down in the near to medium term, low yardings & slaughter levels continue to be the norm – keeping upward pressure on prices. Cattle yardings were up 6% for the week ending 26th of November on the week prior, with 41,136 head yarded. This is still 34% below this time last year and 20,000 head below the 5 year average for the same week .
Slaughter levels were also slightly up last week(<1%), with 93,068 head of cattle sent for processing. Again like yardings, they are well down on last year and the 5 year average. This time last year there was just shy of 110,000 cattle processed and the 5 year average for the same week is 132,000 head of cattle.
The 90CL price is continuing to climb, on the back of big lift in the AUD up 3% on the week prior to 0.737US. The 90CL price increased 10 cents to 874¢/kg swt in AUD terms.
The week ahead….
With only a few more weeks to Christmas and subsequent slowdown in yardings and processing, and plenty of green grass about, it’s hard to see a big uptake in cattle numbers heading to the saleyards or for processing. We can expect prices to remain firm as demand looks to remain strong locally and also internationally.
A recent query came across the desk relating to monsoon scenarios. A wet, or wetter than average, monsoon will obviously impact the market in different
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.
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.
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 rule – strong demand continues
Taking a look at the top saleyards contributing to the Eastern States Young Cattle Indicator (EYCI), again it was the Roma store sales contributing the most head of cattle (17%) and at the highest average price too, at 1192¢/kg cwt. Dubbo and Wagga were the next highest contributors at 13 & 11% respectively and average cattle prices were 1082¢/kg cwt in Dubbo and 1101¢/kg cwt in Wagga.
The EYCI is still over the 1,100¢ mark, finishing the week at 1,107¢/kg cwt. Over in the west, the Western Young Cattle Indicator (WYCI) is at 1143¢/kg cwt, with less than 1,500 head the total 7-day rolling average on offer there.
Looking at the National Indicators it was the Restocker Yearling Steers ruling the market again, up 17 cents (2.9%) on the week prior to settle at 728¢/kg lwt. The Medium Steer indicator also rose by 3%, up 15 cents on the week prior, to finish at 505¢/kg lwt. The Feeder & Heavy Steer indicators both lifted by 2% to finish at 562¢/kg lwt and 470¢/kg lwt respectively.
Meanwhile, Processor Yearling Steers fell 8 cents to 532¢/kg lwt and the Vealer Steer dropped by 6 cents to 633¢/kg lwt.
With grass fever running high and not looking like slowing down in the near to medium term, low yardings & slaughter levels continue to be the norm – keeping upward pressure on prices. Cattle yardings were up 6% for the week ending 26th of November on the week prior, with 41,136 head yarded. This is still 34% below this time last year and 20,000 head below the 5 year average for the same week .
Slaughter levels were also slightly up last week(<1%), with 93,068 head of cattle sent for processing. Again like yardings, they are well down on last year and the 5 year average. This time last year there was just shy of 110,000 cattle processed and the 5 year average for the same week is 132,000 head of cattle.
The 90CL price is continuing to climb, on the back of big lift in the AUD up 3% on the week prior to 0.737US. The 90CL price increased 10 cents to 874¢/kg swt in AUD terms.
The week ahead….
With only a few more weeks to Christmas and subsequent slowdown in yardings and processing, and plenty of green grass about, it’s hard to see a big uptake in cattle numbers heading to the saleyards or for processing. We can expect prices to remain firm as demand looks to remain strong locally and also internationally.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, NLRS, Mecardo
Categories
Have any questions or comments?
Wet season fork in the road? We will know mon-sooner or later
A recent query came across the desk relating to monsoon scenarios. A wet, or wetter than average, monsoon will obviously impact the market in different
Sunshine State shines the brightest
Heavy rain in the southern areas of Queensland sent the restockers on a buying spree along with export buyers at the other end of the
EYCI’s big discount means plenty of room to move
The correlation between the Eastern Young Cattle Indicator (EYCI) and the 90CL US export beef price is primarily driven by our domestic supply and can
Buyers place their faith in youth
Restocker yearling steers performed best this week, improving 12¢ week on week to 358¢/kg lwt and judging from MLA saleyard reports it wasn’t hard to
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.