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.
The cattle market gained momentum this week, as plenty of active buyers drove prices upward and allowed the market to recover some recently lost ground.
Most recent industry outlooks point to a steady-as-she-goes cattle market for the medium term, with strong ongoing export demand and high slaughter levels counteracting the
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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.
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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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Cattle market pitches up
The cattle market gained momentum this week, as plenty of active buyers drove prices upward and allowed the market to recover some recently lost ground.
Restockers to set pace after Autumn break
Most recent industry outlooks point to a steady-as-she-goes cattle market for the medium term, with strong ongoing export demand and high slaughter levels counteracting the
Export buyers out of office
With the nation stopping yesterday to commemorate ANZAC Day, Thursday livestock sales did not take place. As a result, this week saw a decrease in
Cattle price volatility lower as supply and demand find balance
Cattle market volatility has waned recently. The wild swings of 2023 saw prices move up to 70% across the course of two months. Thus far
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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.
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.
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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.