If we look at the figure state by state, it was Queensland that experienced the biggest decline in slaughter numbers week-on-week, processing 28 per-cent less than the week prior. This was 39 per cent lower year-on-year. Compared to 2019, however, it was Victoria that took the biggest tumble, with 41 per cent less cattle crossing the kill floor, as the processing restrictions and JBS Brooklyn closure came into effect. NSW slaughter climbed for the week, up 8 per cent, but was still a significant 14 per cent lower year-on-year. South Australia and Tasmania were above year-ago levels, but with both State’s still processing less than 5000 head, it did little to impact the overall numbers.
Yarding’s were obviously in the same boat, with just 26,880 head sold in the east – 46 per cent less than the same week in 2019. The last time that few cattle were yarded (again, excluding the big holiday weeks) was October 2017. All in all, it is pretty clear cattle supply – or the supply of cattle producers are willing to part with at least – is at historic lows. And with more rain across parts of the east this week, the national herd must be getting closer to rebuild, which will push lower the female slaughter percentage.
This supply factor is supporting the historically high prices, which have held firm this week. The Eastern Young Cattle Indicator lifted 15¢ on the week to 778¢/kg yesterday. Feeder steer indicators in the east picked up 6¢/kg on the week prior. For the past two weeks, the national heavy steer indicator has been trading at its highest levels since its peak in June. This couldn’t be sustained in this week’s market, with heavy steers losing 31¢.
Slaughter slides south
If we look at the figure state by state, it was Queensland that experienced the biggest decline in slaughter numbers week-on-week, processing 28 per-cent less than the week prior. This was 39 per cent lower year-on-year. Compared to 2019, however, it was Victoria that took the biggest tumble, with 41 per cent less cattle crossing the kill floor, as the processing restrictions and JBS Brooklyn closure came into effect. NSW slaughter climbed for the week, up 8 per cent, but was still a significant 14 per cent lower year-on-year. South Australia and Tasmania were above year-ago levels, but with both State’s still processing less than 5000 head, it did little to impact the overall numbers.
Yarding’s were obviously in the same boat, with just 26,880 head sold in the east – 46 per cent less than the same week in 2019. The last time that few cattle were yarded (again, excluding the big holiday weeks) was October 2017. All in all, it is pretty clear cattle supply – or the supply of cattle producers are willing to part with at least – is at historic lows. And with more rain across parts of the east this week, the national herd must be getting closer to rebuild, which will push lower the female slaughter percentage.
This supply factor is supporting the historically high prices, which have held firm this week. The Eastern Young Cattle Indicator lifted 15¢ on the week to 778¢/kg yesterday. Feeder steer indicators in the east picked up 6¢/kg on the week prior. For the past two weeks, the national heavy steer indicator has been trading at its highest levels since its peak in June. This couldn’t be sustained in this week’s market, with heavy steers losing 31¢.
What does it mean?
The strong dollar and plummeting production, not to mention global economic recession, must have an impact on Australia’s beef export markets – but it is hard to say if it will be sooner or later. Domestic influences alone are currently dictating the cattle market, but with 60 per cent of product headed overseas, external pressure must come into play eventually.
Have any questions or comments?
Click on table to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
Categories
Have any questions or comments?
Prices out of sight but top of mind
Young cattle prices mustered up some more strength from another week of subdued supply to post yet another record. And what a record it was!
We can see the downside, but timing uncertain
New records are being set for young cattle, while slaughter cattle are back close to the highs set last year. The most common question being
Stronger, higher, the moon?
The 2021 cattle markets have opened at a relaxed pace in terms of volume; however, prices have risen energetically, with the EYCI well and truly
EU premiums in weaners- fact or fiction?
The question of premiums in agricultural commodities is often up for discussion, and the recent weaner calf sales provides the opportunity to examine the existence
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.