The cattle market experienced little movement in the past seven days, as a public holiday in some states saw yardings dip below the five-year average - something that has only happened this year in other short weeks. Feeder buyers are holding firm, and processors have also kept their prices steady, while restockers may have started to take the foot off the pedal as the winter chill starts to kick in, and reports are that buyers from the north are starting to reach their number limits.
The Eastern Young Cattle Indicator had one of the biggest dips this week, falling more than 13¢/kg to finish at 707¢/kg. More than a third of the 16,500 cattle sold that were eligible for the EYCI came out of the Roma store sale, which averaged slightly below the indicator at 703¢/kg. Restockers were the biggest buyers this week, purchasing about 9500 head, but paid 20¢/kg less than last week. Feeders picked up a majority of the remainder of the stock, and their price only dipped by 3¢/kg week-on-week.
While the EYCI is now operating at some of its biggest premiums to year-ago levels, it is actually trading at some of its lowest above the five-year average. That five-year price peaks for the year in November at 5% above current levels, which would take the EYCI to a top of 757¢/kg for the year. The National Young Cattle Indicator lost 10¢/kg this week, with the two largest contributors being NSW and Queensland online sales at 18% and 14% respectively. However, NSW online sales averaged more than 50¢/kg above the NYCI price, and QLD more than 20¢/kg below.
Lotfeeders also held the National Feeder Steer Indicator firm at 384¢/kg, within 1¢/kg of last week. There were fewer than 900 head of eligible heavy steers sold this week, with the indicator landing at 361¢/kg, the only national price to rise this week and bringing it back above the five-year average. Processor cows fell 8¢/kg to 272¢/kg despite 2300 fewer eligible cattle, largely due to no sale in Wagga Wagga this week.
Slaughter moved sideways last week, falling by only about 500 head on the previous week, which was the highest weekly number of the year so far according to the National Livestock Reporting Service. Continued slaughter above 150,000 head, which we have not seen since the drought-induced turnoff of late 2019, shows the supply – and apparent demand, with prices not falling – remains high and wasn’t dampened much by recent rainfall.
The week ahead….
The public holiday in some states on Monday will no doubt see the slaughter figure for this week dip slightly, but where it sits for the remainder of the month will offer insight into how supply will impact potential price upside in the spring.
With rain falling in parts of southern Australia in recent days, and more set to follow, there could be increased opportunity for restocker movement in
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Supply is still high, but prices are steady
The Eastern Young Cattle Indicator had one of the biggest dips this week, falling more than 13¢/kg to finish at 707¢/kg. More than a third of the 16,500 cattle sold that were eligible for the EYCI came out of the Roma store sale, which averaged slightly below the indicator at 703¢/kg. Restockers were the biggest buyers this week, purchasing about 9500 head, but paid 20¢/kg less than last week. Feeders picked up a majority of the remainder of the stock, and their price only dipped by 3¢/kg week-on-week.
While the EYCI is now operating at some of its biggest premiums to year-ago levels, it is actually trading at some of its lowest above the five-year average. That five-year price peaks for the year in November at 5% above current levels, which would take the EYCI to a top of 757¢/kg for the year. The National Young Cattle Indicator lost 10¢/kg this week, with the two largest contributors being NSW and Queensland online sales at 18% and 14% respectively. However, NSW online sales averaged more than 50¢/kg above the NYCI price, and QLD more than 20¢/kg below.
Lotfeeders also held the National Feeder Steer Indicator firm at 384¢/kg, within 1¢/kg of last week. There were fewer than 900 head of eligible heavy steers sold this week, with the indicator landing at 361¢/kg, the only national price to rise this week and bringing it back above the five-year average. Processor cows fell 8¢/kg to 272¢/kg despite 2300 fewer eligible cattle, largely due to no sale in Wagga Wagga this week.
Slaughter moved sideways last week, falling by only about 500 head on the previous week, which was the highest weekly number of the year so far according to the National Livestock Reporting Service. Continued slaughter above 150,000 head, which we have not seen since the drought-induced turnoff of late 2019, shows the supply – and apparent demand, with prices not falling – remains high and wasn’t dampened much by recent rainfall.
The week ahead….
The public holiday in some states on Monday will no doubt see the slaughter figure for this week dip slightly, but where it sits for the remainder of the month will offer insight into how supply will impact potential price upside in the spring.
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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.
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.
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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.