Earlier this week on Mecardo we were bemoaning processing bottlenecks, and the impact it was having on demand at the livestock level. Things are improving however, with another lift in slaughter post the public holiday of the couple of weeks ago.
After the
lows of the public holiday week, cattle slaughter leapt higher last week. Figure 1 shows east coast cattle slaughter
hitting a new three year high of 127,748 head, up 2.4% on the previous annual
high, set just a month ago.
Good
processing margins will lead to increasing slaughter capacity, but it’s a slow
road. Despite the increase in slaughter,
the Eastern Young Cattle Indicator (EYCI) eased this week, heading back toward
349¢/kg cwt.
The market
is again testing the support at 350¢, even though only 9,200 head were included
in the indicator this week. Dalby was
the biggest drag on the market, at 344¢ for 24% of the cattle in the
indicator. Just down the road, Roma
Store was priced at 380¢ for 31%. This
highlight more the difference in cattle at each centre, with Roma more light
store cattle and feeders, and Dalby at the processor end.
Feeders are
still the most expensive cattle in the EYCI, at 364¢, compared to 342¢ for
restockers and 327¢ for processors.
Feeders are no doubt enjoying the cheaper cattle, although the finished
item is also much less valuable.
Next week
With little rain on the forecast, there isn’t much impetus for price
improvement to kick off over the coming weeks.
We are currently in a bit of a holding pattern, with significant upside
reliant on wet season rains in the north in another 6 weeks or so.
ABARES released their March 2026 Agricultural Commodities Report last week and have revised most major figures higher for the current financial year. Gross value of
Much like many paddocks across Australia after recent rains, the national cattle indicators are a sea of green. All categories rose from the previous week
Prices tracked sideways as the trade waits in anticipation of some rainfall to reach the dry southern cattle regions. Indicative NLRS yardings early Friday has
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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.
Rising slaughter but no joy for price
After the lows of the public holiday week, cattle slaughter leapt higher last week. Figure 1 shows east coast cattle slaughter hitting a new three year high of 127,748 head, up 2.4% on the previous annual high, set just a month ago.
Good processing margins will lead to increasing slaughter capacity, but it’s a slow road. Despite the increase in slaughter, the Eastern Young Cattle Indicator (EYCI) eased this week, heading back toward 349¢/kg cwt.
The market is again testing the support at 350¢, even though only 9,200 head were included in the indicator this week. Dalby was the biggest drag on the market, at 344¢ for 24% of the cattle in the indicator. Just down the road, Roma Store was priced at 380¢ for 31%. This highlight more the difference in cattle at each centre, with Roma more light store cattle and feeders, and Dalby at the processor end.
Feeders are still the most expensive cattle in the EYCI, at 364¢, compared to 342¢ for restockers and 327¢ for processors. Feeders are no doubt enjoying the cheaper cattle, although the finished item is also much less valuable.
Next week
With little rain on the forecast, there isn’t much impetus for price improvement to kick off over the coming weeks. We are currently in a bit of a holding pattern, with significant upside reliant on wet season rains in the north in another 6 weeks or so.
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Click on graph to expand
Click on graph to expand
Data sources: MLA Mecardo
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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.
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.