The Eastern Young Cattle Indicator jumped 7 cents to 686c/kg cwt this week, following a 6% week on week increase in yardings. Restockers and feeders were well placed to acquire cattle in numbers at the nations saleyards in what was a largely sideways week for pricing.
Restocker demand was alive and well as the number of heifers
and steers heading back to the paddock increased 72% and 49% respectively week
on week. In Queensland’s main saleyards, there was strong buyer turnout but
restockers, in particular, chose to be more selective, resulting in the Restocker
Yearling Heifer Index losing 8¢ to 290¢/kg lwt and the Restocker Yearling Steer
Index dropping 10¢ to 365¢/kg lwt.
With feed crop pricing globally pushing lower under supply
pressure, feedlotters are in a good place currently to acquire cattle and this
was evident in the numbers heading to feedlots this week. A 57% increase in numbers sold to feeders
indicates confidence in the outlook, and they don’t need to stretch the budget
too far currently as the National Feeder Steer Indicator lost 9¢ to 368¢/kg
lwt.
Processor cows finished 3¢ higher to 29 ¢/kg lwt after a 10%
increase in yardings week on week. Last week’s Steiner US beef report (read
more here) saw 90cl pricing average slightly higher to 289¢/lb. Simultaneously the Australian dollar has
creeped upward against the US which has eroded some of the gains. For the most part this year the exchange rate
has been very supportive of Australian export demand. A significant change in
the economic outlook would be required to put a dent in current export beef
pricing, however, inventory management and reactive buying and selling will
start to play a role when the exchange rate fluctuates.
This week on Mecardo, Angus Brown discussed the level of
slaughter pushing the herd into decline (read more here). June quarterly cattle slaughter shows that
processing cattle has reached its strongest level since 2019 and that Female
cattle slaughter as a proportion of total slaughter jumped significantly.
Next week
With the direction of the cattle herd looking to be in decline but seasonal conditions for major cattle areas looking upbeat and US export demand likely to remain at least sideways, the platform looks to be built for opportunity in the cattle market.
Next week’s MLA herd projection will provide a refresh on the size of the herd. If it’s lower than we expect could this push saleyard pricing higher?
The search for weight continues as buyers bid strongly for heavier cattle. With the supply agenda set by Meat & Livestock Australia last week, confidence
The Meat and Livestock Australia (MLA) Cattle Projections released last week have confirmed the theory that we are seeing peak cattle herd now, and supply
The BOM declared August as the hottest on record, for Northern East Coast producers it created ideal fattening conditions and allowed unimpaired movement of stock.
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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.
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Which way is the wind blowing?
Restocker demand was alive and well as the number of heifers and steers heading back to the paddock increased 72% and 49% respectively week on week. In Queensland’s main saleyards, there was strong buyer turnout but restockers, in particular, chose to be more selective, resulting in the Restocker Yearling Heifer Index losing 8¢ to 290¢/kg lwt and the Restocker Yearling Steer Index dropping 10¢ to 365¢/kg lwt.
With feed crop pricing globally pushing lower under supply pressure, feedlotters are in a good place currently to acquire cattle and this was evident in the numbers heading to feedlots this week. A 57% increase in numbers sold to feeders indicates confidence in the outlook, and they don’t need to stretch the budget too far currently as the National Feeder Steer Indicator lost 9¢ to 368¢/kg lwt.
Processor cows finished 3¢ higher to 29 ¢/kg lwt after a 10% increase in yardings week on week. Last week’s Steiner US beef report (read more here) saw 90cl pricing average slightly higher to 289¢/lb. Simultaneously the Australian dollar has creeped upward against the US which has eroded some of the gains. For the most part this year the exchange rate has been very supportive of Australian export demand. A significant change in the economic outlook would be required to put a dent in current export beef pricing, however, inventory management and reactive buying and selling will start to play a role when the exchange rate fluctuates.
This week on Mecardo, Angus Brown discussed the level of slaughter pushing the herd into decline (read more here). June quarterly cattle slaughter shows that processing cattle has reached its strongest level since 2019 and that Female cattle slaughter as a proportion of total slaughter jumped significantly.
Next week
With the direction of the cattle herd looking to be in decline but seasonal conditions for major cattle areas looking upbeat and US export demand likely to remain at least sideways, the platform looks to be built for opportunity in the cattle market.
Next week’s MLA herd projection will provide a refresh on the size of the herd. If it’s lower than we expect could this push saleyard pricing higher?
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, Steiner Consulting group, Mecardo
Categories
Have any questions or comments?
Where are we with the FSR?
The female slaughter rate (FSR) is one of the key figures used to demonstrate what is happening with the Australian beef cattle herd. There has
Heavy cattle grabbing attention
The search for weight continues as buyers bid strongly for heavier cattle. With the supply agenda set by Meat & Livestock Australia last week, confidence
Is the herd turn enough to lift prices
The Meat and Livestock Australia (MLA) Cattle Projections released last week have confirmed the theory that we are seeing peak cattle herd now, and supply
Hot August sees supply build in September
The BOM declared August as the hottest on record, for Northern East Coast producers it created ideal fattening conditions and allowed unimpaired movement of stock.
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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.
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.
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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.