Yardings increased 25% last week, pushing offerings to 2% shy of the five-year average for this time of year. Slaughter rebounded 12% last week, reaching back over 100,000 head. We are still operating in a constrained environment though, where slaughter is 22% below average, which is contributing towards maintaining buoyant pricing levels.
The EYCI continues to consolidate its position on the high ground, breaking into record territory again for a brief moment on Tuesday, at 1,033¢/kg. Young cattle supply slipped back 4%, encouraging prices higher in general, and demand appears to have strengthened again in the north.
Roma Store prices lifted up 15¢ to 1,014¢/kg despite 25% higher yardings than last week, with yardings also increasing 67% to 2,516 head Dalby, where average prices fell 17¢ to 993¢/kg in response. Wagga yardings dropped back 24% in contrast, with prices slipping 9¢ to 1,066¢/kg
90CL frozen cow prices lifted 10¢(1%) to 817¢/kg swt, with both the weakness in the aussie dollar last week, and an underlying increment of 1¢ US per pound bringing prices higher. Steiner reports that product origin is of notable importance at the moment, with the spread between Aussie beef and product from Brazil widening of late because some large users are unable to buy Brazilian beef under their procurement standards. Uncertainty about product availability is also seeing some buyers lock in premium prices for Australian beef on a forward basis.
The Aussie dollar fell 0.4% against the US greenback to 0.727US. In addition, nervousness about the impending $400bn collapse of Chinese property developer Evergrande has helped the US dollar strengthen, and falling iron ore prices have depreciated the AUD.
Signs of strengthening demand for cattle
Yardings increased 25% last week, pushing offerings to 2% shy of the five-year average for this time of year. Slaughter rebounded 12% last week, reaching back over 100,000 head. We are still operating in a constrained environment though, where slaughter is 22% below average, which is contributing towards maintaining buoyant pricing levels.
The EYCI continues to consolidate its position on the high ground, breaking into record territory again for a brief moment on Tuesday, at 1,033¢/kg. Young cattle supply slipped back 4%, encouraging prices higher in general, and demand appears to have strengthened again in the north.
Roma Store prices lifted up 15¢ to 1,014¢/kg despite 25% higher yardings than last week, with yardings also increasing 67% to 2,516 head Dalby, where average prices fell 17¢ to 993¢/kg in response. Wagga yardings dropped back 24% in contrast, with prices slipping 9¢ to 1,066¢/kg
90CL frozen cow prices lifted 10¢(1%) to 817¢/kg swt, with both the weakness in the aussie dollar last week, and an underlying increment of 1¢ US per pound bringing prices higher. Steiner reports that product origin is of notable importance at the moment, with the spread between Aussie beef and product from Brazil widening of late because some large users are unable to buy Brazilian beef under their procurement standards. Uncertainty about product availability is also seeing some buyers lock in premium prices for Australian beef on a forward basis.
The Aussie dollar fell 0.4% against the US greenback to 0.727US. In addition, nervousness about the impending $400bn collapse of Chinese property developer Evergrande has helped the US dollar strengthen, and falling iron ore prices have depreciated the AUD.
The week ahead….
The rain is moving further north over the next week, with central southern QLD set to receive a 10mm drink in addition to a big swathe of central NSW likely to get 25mm. Robust prices in cattle markets, despite higher supply last week points towards strong demand being in the air at the moment, so next week may be an example of more positivity.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo, BOM
Categories
Have any questions or comments?
Forget the Moon, EYCI targets Mars!
Cattle prices reached the moon a long time ago in many people’s minds, and now it looks like its headed for Mars. This week the
Percentiles – October 2021
Mecardo’s Percentiles update for October 2021. Click below to view the latest report Grains Oilseeds Sheep and lambs Cattle Wool Dairy Fuel Percentiles are an important
Extraordinary weaner values but still money in it
Earlier this year we were writing about the last of the Cow/Calf producers to receive the record prices. It was sellers of autumn drop weaners
Green ink lights up the market
This week was characterised by a dose of broad positivity, as the national indicators for all cattle categories climbed further upwards. News that new all-time
Don’t have an account with us? Join free.
You can have full premium access to all of our content with a monthly or annual subscription.
Alternatively, create a free account to access our Insights blog and two free premium article a month!
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.