Cattle yardings were up for the 4th week in a row and prices remained flat or slightly down despite the supply pressure, thanks to strong demand from processors. Quality and weight is what the buyers are chasing, with quality pens attracting the most competition and increasing the spread of prices.
The Eastern Young Cattle Indicator lifted again this week,
up 3% on the week prior to finish at 657 c/kg. Yardings for the indicator rose
as well by 13% to a total throughput of 19k head. Roma had the largest
contribution to the indicator, with 36% of the 19k head, its saleyard report
talking of a full buying field.
Processor cow prices closed flat week on week in regards to
value, despite a large 20% increase in yardings on the week before. The
indicator did spike earlier in the week to over the 280 c/kg mark which is the
first time since late February last year. For the month of July, the Processor
Cow Indicator has risen 26%, helped by southern processors heading north to
ensure plants remain at capacity to meet strong overseas demand, especially
from the US who has imported 77% more beef compared to last year.
Restocker steer and heifers both had an increase in yardings
of 37% for the week. In regards to value, heifers fell slightly by 1% to 277
c/kg and steers rose by 2% to 358c/kg. For both the indicators this week was a
flattening of what has been a month-long rise, as restockers are cautious not
to be holding cattle that they overpaid for.
The Northern Feeder steer price produced by Argus rose 16
c/kg over the week. The price rise is attributed to a shortage of
“in-specification cattle” for feedlotters according to Argus’s report. Again,
reinforcing the buying field’s desire as well as the scarcity of quality cattle
at the correct weight range.
East Coast cattle slaughter for the week prior was up
slightly by 2% on the week before, with 138k head processed. It was the fourth
largest week of cattle slaughter on the East Coast for 2024. If processors are
looking to maintain these levels of capacity that are being achieved it will
continue to support prices, especially with southern processors heading north
to secure supply as typically seen through winter months.
Initial yardings data from the NRLS for the week rose by 11%
to 68k head, a level which is abnormally high for this time of the year. This
selling weeks yardings for the East Coast is 45% above the 5-year average and
67% above this time last year.
The week ahead….
With processors keen to keep plants at capacity there will be support for price provided they meet the quality requirements. This will help pull prices higher, whilst also increasing the spread within them. The export market remains buoyant as well, further supporting prices.
Since widespread autumn rain failed to eventuate in southern Australia, a north-south differential has been evident in the drivers of the cattle market. It comes
There was very little movement in the cattle market this week, with winter weather now impacting the quality of stock available. This saw processors shift
The world’s demand for protein has not waned this year despite plenty of global unrest. Australian beef exports have reached new highs across the board
Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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Southern sun seekers
The Eastern Young Cattle Indicator lifted again this week, up 3% on the week prior to finish at 657 c/kg. Yardings for the indicator rose as well by 13% to a total throughput of 19k head. Roma had the largest contribution to the indicator, with 36% of the 19k head, its saleyard report talking of a full buying field.
Processor cow prices closed flat week on week in regards to value, despite a large 20% increase in yardings on the week before. The indicator did spike earlier in the week to over the 280 c/kg mark which is the first time since late February last year. For the month of July, the Processor Cow Indicator has risen 26%, helped by southern processors heading north to ensure plants remain at capacity to meet strong overseas demand, especially from the US who has imported 77% more beef compared to last year.
Restocker steer and heifers both had an increase in yardings of 37% for the week. In regards to value, heifers fell slightly by 1% to 277 c/kg and steers rose by 2% to 358c/kg. For both the indicators this week was a flattening of what has been a month-long rise, as restockers are cautious not to be holding cattle that they overpaid for.
The Northern Feeder steer price produced by Argus rose 16 c/kg over the week. The price rise is attributed to a shortage of “in-specification cattle” for feedlotters according to Argus’s report. Again, reinforcing the buying field’s desire as well as the scarcity of quality cattle at the correct weight range.
East Coast cattle slaughter for the week prior was up slightly by 2% on the week before, with 138k head processed. It was the fourth largest week of cattle slaughter on the East Coast for 2024. If processors are looking to maintain these levels of capacity that are being achieved it will continue to support prices, especially with southern processors heading north to secure supply as typically seen through winter months.
Initial yardings data from the NRLS for the week rose by 11% to 68k head, a level which is abnormally high for this time of the year. This selling weeks yardings for the East Coast is 45% above the 5-year average and 67% above this time last year.
The week ahead….
With processors keen to keep plants at capacity there will be support for price provided they meet the quality requirements. This will help pull prices higher, whilst also increasing the spread within them. The export market remains buoyant as well, further supporting prices.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, Argus media, Mecardo
Categories
Have any questions or comments?
Brazilian beef tariffs bullish for Aussie beef?
The leaner winter months have seen the seasonal uptick in prices continue for cattle markets, but news on the global trade front could create more
NSW yards overflow as Queensland’s dry up
Since widespread autumn rain failed to eventuate in southern Australia, a north-south differential has been evident in the drivers of the cattle market. It comes
Winter chill weighs on cattle weights
There was very little movement in the cattle market this week, with winter weather now impacting the quality of stock available. This saw processors shift
Export records fall as demand beefs up
The world’s demand for protein has not waned this year despite plenty of global unrest. Australian beef exports have reached new highs across the board
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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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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.