Despite the suspension of four beef processors from exporting to China this week, prices managed to gain ground. The Heavy Steer was the star performer, with the CV-19 National Indicator gaining 15¢/kg lwt, to get back to 335¢/kg. This week’s move puts the Heavy Steer back within 10¢ of the all-time record set back in March.
Cows and Feeders also gained ground, although they weren’t quite as strong (Figure 1). Tightening supply is no doubt helping prices higher, both at saleyard and over the hooks level, but improving export prices are playing a part.
Figure 2 shows the 90CL Indicator has lifted in both US and AUD terms (Figure 2). Steiner report that many US users are short stock, as they took a wait and see approach in April, and now need to stock up. Additionally, US Cow slaughter has been down, as with all cattle, and lean beef in general is in short supply.
The backlog of over fed cattle in the US might see continued lower Cow slaughter and provide some support for our exports over the medium term.
Despite the cattle backlog, US Live Cattle Futures bounced higher this week, moving back its highest level since mid-March. More positive signs of some resilience of beef and cattle demand.
Some positive signs amid the turmoil
Next week
It is hard to see cattle supply improving as we move toward winter. In fact, it should get tighter. Stronger export prices will be required to see prices keep rising in a similar trend to the last couple of weeks.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo, Steiner
Categories
Energy costs for cattle & sheep processing.
The energy crisis hitting Australia has caused a great deal of speculation about the impact of price rises upon the Aussie manufacturing sector, particularly meat
Watch out – change is in the air
The farmers friend – La Niña has reached an end this week with the Bureau of Meteorology shifting their climate outlook models to “watch” status.
Percentiles – June 2022
Mecardo’s Percentiles update for June 2022. Click below to view the latest report Grains Oilseeds Sheep and lambs Cattle Wool Dairy Fuel Percentiles are an important
Herd rebuild ramps up, slaughter restrained
Forecasts for the cattle herd rebuild have been lifted due to both the continued excellent seasonal conditions in southern Australia, and a drop in the
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.