The farmers friend - La Niña has reached an end this week with the Bureau of Meteorology shifting their climate outlook models to “watch” status. While this won’t change anything over night, or at least not in a big way until the next northern monsoon season, there has certainly been a change in the air for the cattle market.
Prices continued to decline across states and markets this week. The fall of the Eastern Young Cattle Indicator continued, dropping 34¢ (-3%) to land at 1053¢/kg cwt. In the last 4 weeks the EYCI has lost 61¢, but still remains well above the same time last year. The number of EYCI eligible cattle at saleyards was slightly higher than the week prior, with this level of supply clearly testing the market. Turning West, the direction of the young cattle market met the same fate – downwards. The Western Young Cattle Indicator lost 80¢ over the week, settling at 1027¢/kg cwt.
The weaker market was consistent across all National categories of cattle. Stronger demand for processor steers last week was met with a correction of 34¢ this week. The National Feeder Steer Indicator slipped back 19¢ to 527¢/kg lwt and medium cows dropped just 9¢ over the week.
Saleyard throughput data for last week indicates that a jump in Queensland cattle yardings has been one of the drivers of the softer market. Over 20,000 head were yarded last week which was a 79% jump on the week prior and 18% higher than the five year seasonal average. National yardings were 15% higher on the week prior and 31% higher than the same time last year. However, saleyard reports this week suggest that lighter throughput still saw prices ease.
While there was plenty of activity in yards last week, processors were running below recent levels. East coast cattle slaughter totalled just 78,610 head last week, 17% below the week prior and also 17% below the same week last year.
The US frozen cow 90CL price held fairly stable at 277¢US/lb as supply remains limited. In Aussie dollar terms it gained 19¢ closing the week ending the 17th June at 878¢/kg swt.
The week ahead….
A bit of shine has come off the cattle market but with many regions holding enough pasture to warrant rebuilding efforts, there should be enough support to prevent significant downside.
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.
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.
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.
Watch out – change is in the air
Prices continued to decline across states and markets this week. The fall of the Eastern Young Cattle Indicator continued, dropping 34¢ (-3%) to land at 1053¢/kg cwt. In the last 4 weeks the EYCI has lost 61¢, but still remains well above the same time last year. The number of EYCI eligible cattle at saleyards was slightly higher than the week prior, with this level of supply clearly testing the market. Turning West, the direction of the young cattle market met the same fate – downwards. The Western Young Cattle Indicator lost 80¢ over the week, settling at 1027¢/kg cwt.
The weaker market was consistent across all National categories of cattle. Stronger demand for processor steers last week was met with a correction of 34¢ this week. The National Feeder Steer Indicator slipped back 19¢ to 527¢/kg lwt and medium cows dropped just 9¢ over the week.
Saleyard throughput data for last week indicates that a jump in Queensland cattle yardings has been one of the drivers of the softer market. Over 20,000 head were yarded last week which was a 79% jump on the week prior and 18% higher than the five year seasonal average. National yardings were 15% higher on the week prior and 31% higher than the same time last year. However, saleyard reports this week suggest that lighter throughput still saw prices ease.
While there was plenty of activity in yards last week, processors were running below recent levels. East coast cattle slaughter totalled just 78,610 head last week, 17% below the week prior and also 17% below the same week last year.
The US frozen cow 90CL price held fairly stable at 277¢US/lb as supply remains limited. In Aussie dollar terms it gained 19¢ closing the week ending the 17th June at 878¢/kg swt.
The week ahead….
A bit of shine has come off the cattle market but with many regions holding enough pasture to warrant rebuilding efforts, there should be enough support to prevent significant downside.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
Categories
Have any questions or comments?
Plenty of beef for the US
While beef export volumes have eased from the record highs of July, they continue to run well ahead of the average. The US market share
No steering clear of price falls
There was an inward shift in both supply and demand this week for the cattle market, resulting in lower prices across the board. Multiple saleyards
Lotfeeding capacity and utilisation on the rise
The number of cattle being finished on grain in Australia continues to rise according to the June quarter lotfeeding survey from MLA and ALFA. Feeder
Cattle buyers are content for now
Buyers don’t have to stretch far to find volumes of cattle at the moment. While patches of the east have either received or are due
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.