A swag of public holidays means we haven’t recapped the cattle market for three weeks, but there has been limited movement across most indicators in that period. Rain is still eluding many producers in the south, and the assessment of actual losses from flooding in the north is still underway, which means most of the market has been in a holding pattern for April.
Yardings obviously jumped this week with all sales back as usual, reported to be around the 80,000 head mark and in line with pre-Easter levels. The latest slaughter figures are skewed by it being a three-day week, sitting at 77,583 week to date. The interesting thing about that figure, though, was that for the first time at least this year, the National Livestock Reporting Service shows the female percentage of the kill was higher than the male percentage.
The processor cow price finished flat at 531¢/kg carcass weight, which is historically strong at 7% above the five-year average. Despite losing 30¢/kg in the past month, the decline or lack there of this week signifies resilience against higher throughput, with numbers climbing more than 7000 head. The 90CL US imported lean beef price has also lost a little bit of ground in the past month, but again, it remains historically very high, lifting slightly again last week.
Processors being back in full swing was obvious in the National Heavy Steer Indicator this week, which lifted 20¢/kg, to 361¢/kg, while feeder steers also made gains, up 10¢/kg to 386¢/kg. The Restocker Yearling Steer Indicator had the biggest increase this week, up nearly 25¢/kg to 407¢/kg, which is its second-highest level for the year, and only the second time the weekly average price has broken the 400¢/kg mark since April 2023.
The Eastern States Young Cattle Indicator is currently sitting at 716¢/kg, up about 16¢/kg this week and still sitting around the highest point it has been in the past 12 months. The demand from the north was very much present in this EYCI this week, with Roma Store making up 30% of the indicator throughput with about 7300 head and averaging above the average at 719¢/kg.
The week ahead….
The next week will give us a better view of where prices will sit as we head into winter, as yardings and slaughter settle, and subsequent demands settle after the short weeks. If no widespread rainfall comes about in the south in the next week, we could see a further increase in turnoff from that area, which will also play a role and test just how strong restocker demand from those in better seasonal conditions is.
Winter is right around the corner, and historically, we start to see an increase in weekly cattle slaughter figures from here on out. Domestic seasonal
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Strength remains in the market post-holidays
Yardings obviously jumped this week with all sales back as usual, reported to be around the 80,000 head mark and in line with pre-Easter levels. The latest slaughter figures are skewed by it being a three-day week, sitting at 77,583 week to date. The interesting thing about that figure, though, was that for the first time at least this year, the National Livestock Reporting Service shows the female percentage of the kill was higher than the male percentage.
The processor cow price finished flat at 531¢/kg carcass weight, which is historically strong at 7% above the five-year average. Despite losing 30¢/kg in the past month, the decline or lack there of this week signifies resilience against higher throughput, with numbers climbing more than 7000 head. The 90CL US imported lean beef price has also lost a little bit of ground in the past month, but again, it remains historically very high, lifting slightly again last week.
Processors being back in full swing was obvious in the National Heavy Steer Indicator this week, which lifted 20¢/kg, to 361¢/kg, while feeder steers also made gains, up 10¢/kg to 386¢/kg. The Restocker Yearling Steer Indicator had the biggest increase this week, up nearly 25¢/kg to 407¢/kg, which is its second-highest level for the year, and only the second time the weekly average price has broken the 400¢/kg mark since April 2023.
The Eastern States Young Cattle Indicator is currently sitting at 716¢/kg, up about 16¢/kg this week and still sitting around the highest point it has been in the past 12 months. The demand from the north was very much present in this EYCI this week, with Roma Store making up 30% of the indicator throughput with about 7300 head and averaging above the average at 719¢/kg.
The week ahead….
The next week will give us a better view of where prices will sit as we head into winter, as yardings and slaughter settle, and subsequent demands settle after the short weeks. If no widespread rainfall comes about in the south in the next week, we could see a further increase in turnoff from that area, which will also play a role and test just how strong restocker demand from those in better seasonal conditions is.
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Data sources: MLA, Mecardo
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Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
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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.
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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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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.