After some rapid improvement in the last few weeks, the major saleyard indicators saw some minor decline this week as the market adjusts to new price levels, and some lighter lower quality cattle made their way to the yards.
Restocker and feeder steers, lost 13¢ week on week, with the rest of the indicators easing by single digits (see Indicator table). Indicative yardings were down 10% but the easing supply pressure wasn’t able to boost indicators higher. At current prices, buyers will likely be pickier about the stock they pay premiums for which was evident across MLA saleyard reports this week which noted that plenty of lightweight weaners and lower quality stock made their way to the yards this week. The Eastern Young Cattle Indicator (EYCI) improved 5¢ to 975¢/kg cwt.
The feeder market remains in a strong position as the China beef quota for Australia rapidly approaches. Grainfed beef demand has been rushed forward with YTD grainfed beef into China 37% higher than this time last year. China hasn’t been the only customer though ordering ahead of schedule which is important for feeder price support.
Comparing the January – May period for this year to 2025, a number of countries are well ahead on grainfed beef imports such as the UK (+93% YoY), Canada (+42% YoY) and even Saudi Arabia (+25% YoY) that typically wouldn’t be strong customers. This in combination with strong demand from Japan and South Korea for grainfed beef despite the tricky global economy bodes well for prospects in the next few months. Rainfall on top of this has assisted in keeping feeder steer prices elevated this season.
The impact of Brazil vs Australia into the US manufacturing beef market is yet to be determined but there remain bullish signals that are supportive of demand from both countries into the US still. This week on Mecardo Jamie-Lee Oldfield covered the incidence of Mexican Screw worm cases in the US (Read more here) and how further decline in the movement of cattle in the US will further pressure their own productive capacity.
Next week
Premiums for higher quality, heavier stock will likely be evened out by some discounts for lighter stock as high prices push some stock for better or worse to the yards.
High prices have cattle heading to the market as supply remains strong for winter. Prices eased slightly but remain elevated. Numbers, quality and weights remain
Recent rain which has sent young cattle markets into overdrive have overshadowed some of the developing headwinds, especially for finished cattle. The latest beef export
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What next after China?
Next week
Premiums for higher quality, heavier stock will likely be evened out by some discounts for lighter stock as high prices push some stock for better or worse to the yards.
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Data sources: MLA, Bloomberg, Mecardo
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Winter supply remains strong
High prices have cattle heading to the market as supply remains strong for winter. Prices eased slightly but remain elevated. Numbers, quality and weights remain
Brazil beefs up US market share
The global beef market discussion was focussed primarily on the United States for much of the past few years – until China made headlines with
Yardings down since May but year-to-date still higher
The cattle market was a bit of a mixed bag this week, with national indicators headed in both directions, but the take home seems to
China quota showing up in the data
Recent rain which has sent young cattle markets into overdrive have overshadowed some of the developing headwinds, especially for finished cattle. The latest beef export
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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.
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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.