Following heavy rain in northern NSW and southern Queensland last week, the cattle market generally built on the recent July price rally, with four indicators hitting new 12-month highs.
The Eastern Young Cattle Indicator rose to new heights for
the last 12 months, climbing 2% for the selling week to 679 ¢/kg. Yardings for
the indicator also increased by 3% to a total of 14.9k head. Roma had the
largest contribution to the indicator with 31% of total yardings. Gunnedah had
the highest average price for the indicator of 734 ¢/kg, and 5% of total
yardings. Its saleyard report stated a “big improvement in the quality” helped push
prices higher.
The Processor Cow indicator lifted 1% to 293 ¢/kg, off the
back of a 15% decrease in yardings for the week. Dalby topped the contribution
to the indicator, but despite the return of a major processor at the sale, the
average price at Dalby was below the indicator.
Restocker Steer and Heifer indicators both lifted in terms
of value for the week. Steers rose 2% to 375 ¢/kg with a 10% lift in yardings,
pointing to stronger demand as the increase in supply would have put downward
pressure on prices. Heifers rose 4% to 298 ¢/kg, this was off the back of
tightening supply with throughput down 28%. Roma dominated volumes for both
steers and heifers, with the saleyard accounting for 48% of heifer throughput
and 38% of the steers.
The National Heavy Steer Indicator fell by 4% this selling
week following its 12% rise the prior week, closing at 345 ¢/kg. Dalby and
Gracemere sales not helping with the top two contributors in volume averaging
below the indicator.
Initial total yardings from MLA show a decrease week on
week, but when diving into the detail there were significant swings between
selling centres. QLD saleyards Gracemere, Dalby and Roma all had large 1k plus
yarding lifts, with Gracemere having a 78% rise in yardings. This was countered
by Victoria and South Australian saleyards which had a decrease in yardings
week on week.
Total slaughter levels for the week prior fell slightly week
on week by 3%, this was mainly due to a drop in QLD volume which was down 8%.
QLD makes up half of the total cattle slaughter volumes for the nation with an
average for 2024 of 67k head a week. This is the 7th week of
decreases on the East Coast for cattle slaughter volume from the largest week
of the year (143.7k head).
Next week
The final selling week for August will be a battle of supply and demand. Supply, off the back of recent rain, has been tighter with producers looking to maximise weight gain before selling. On the demand front, some processing plants will close for some maintenance over the festive season which is likely to impact feedlot demand in the short term. This combined with recent price rises may take some demand out of the market.
As seen this week when supply tightens at the yards, young cattle prices spike upward in the current climate. The Eastern Young Cattle Indicator improved
The cattle lotfeeding sector has been experiencing huge growth over the last few years. The September quarter saw growth in cattle on feed (COF) numbers
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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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Small gains from big rains
The Eastern Young Cattle Indicator rose to new heights for the last 12 months, climbing 2% for the selling week to 679 ¢/kg. Yardings for the indicator also increased by 3% to a total of 14.9k head. Roma had the largest contribution to the indicator with 31% of total yardings. Gunnedah had the highest average price for the indicator of 734 ¢/kg, and 5% of total yardings. Its saleyard report stated a “big improvement in the quality” helped push prices higher.
The Processor Cow indicator lifted 1% to 293 ¢/kg, off the back of a 15% decrease in yardings for the week. Dalby topped the contribution to the indicator, but despite the return of a major processor at the sale, the average price at Dalby was below the indicator.
Restocker Steer and Heifer indicators both lifted in terms of value for the week. Steers rose 2% to 375 ¢/kg with a 10% lift in yardings, pointing to stronger demand as the increase in supply would have put downward pressure on prices. Heifers rose 4% to 298 ¢/kg, this was off the back of tightening supply with throughput down 28%. Roma dominated volumes for both steers and heifers, with the saleyard accounting for 48% of heifer throughput and 38% of the steers.
The National Heavy Steer Indicator fell by 4% this selling week following its 12% rise the prior week, closing at 345 ¢/kg. Dalby and Gracemere sales not helping with the top two contributors in volume averaging below the indicator.
Initial total yardings from MLA show a decrease week on week, but when diving into the detail there were significant swings between selling centres. QLD saleyards Gracemere, Dalby and Roma all had large 1k plus yarding lifts, with Gracemere having a 78% rise in yardings. This was countered by Victoria and South Australian saleyards which had a decrease in yardings week on week.
Total slaughter levels for the week prior fell slightly week on week by 3%, this was mainly due to a drop in QLD volume which was down 8%. QLD makes up half of the total cattle slaughter volumes for the nation with an average for 2024 of 67k head a week. This is the 7th week of decreases on the East Coast for cattle slaughter volume from the largest week of the year (143.7k head).
Next week
The final selling week for August will be a battle of supply and demand. Supply, off the back of recent rain, has been tighter with producers looking to maximise weight gain before selling. On the demand front, some processing plants will close for some maintenance over the festive season which is likely to impact feedlot demand in the short term. This combined with recent price rises may take some demand out of the market.
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Data sources: MLA, BOM, Mecardo
Categories
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Northern restocker conquest pushes heifers higher
As seen this week when supply tightens at the yards, young cattle prices spike upward in the current climate. The Eastern Young Cattle Indicator improved
Lotfeeders making hay
The cattle lotfeeding sector has been experiencing huge growth over the last few years. The September quarter saw growth in cattle on feed (COF) numbers
Market moves focus as we wait for the weather
With substantial rainfall on the radar and the holiday season right around the corner, the focus of the cattle market has swung away from finished
Big turnoff not a turnoff for beef
The latest data release from the Australian Bureau of Statistics on livestock products has shown that our beef cattle herd is well and truly into
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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.