The start of winter brought with it the rain, with widespread falls adding to the guage. Tighter supply this week was what helped drive prices higher for most of the cattle indicators. Dairy cows had the largest jump week on week and if you’re on the east coast its good news because all of those indicators are higher than they were this time last year.
The Eastern Young Cattle Indicator kept its head above the $6/kg mark, closing the week at 610 c/kg cwt. Yardings for the indicator were down by 26% (5.1k head) as recent rain slowed the supply of cattle to the yards. Feedlotters overtook the restockers as the largest buying group from last week. Roma and Wagga have the two largest contributions of the selling centres, both talk of a full field of buyers.
In the West, prices also rose for young cattle. The Western Young Cattle Indicator finished the week at 520 c/kg cwt, a rise of 20% week on week. Yardings were down by almost half to 364 head from 701. This strong increase week on week has closed the gap to the eastern counterparts from an 18% discount to a 15% discount.
Processor cow pricesrose 9% for the week, finishing the first selling week of winter at 221 c/kg lwt. Yardings for the indicator was back 13% on the previous week. Roma and Wagga again topped the list of the largest contributors to the indicator, with Wagga’s saleyard report mentioning that processors were not as active at the rail due to the backlog at abattoirs.
Restocker heifers rose slightly by 1% (3 c/kg) to average 250 c/kg for the week, again driven by tighter supply. On the other hand, restocker steer prices fell, ever so slightly by 0.5% (2 c/kg) to 330 c/kg. Yardings were back 48% for the week.
Processor capacity remains the bottleneck in the supply chain, as the tendered cattle from pastoral stations continue to come in droves following the muster at the conclusion of their wet season. This allows the processors to be more selective with what they price their buying grids at. For the last week of May the slaughter figure was up 55% on the same week last year and 47% on the 5-year average for the same week.
Next week
A short selling week for all states bar WA and QLD to celebrate the Kings birthday will see some sales not take place and yardings are likely to be down as a result. The majority of the rain in the north seems to have ended according to the BOM, with not a lot on the forecast.
Processor capacity will continue to remain elevated as most processors don’t have availability for at least the next month. This could lead to a more subdued market until the backlog reduces. It does point to opportunity for backgrounders and restockers though, especially those whose pastures just got a nice drink.
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
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.
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.
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.
Winter brings the wet
The Eastern Young Cattle Indicator kept its head above the $6/kg mark, closing the week at 610 c/kg cwt. Yardings for the indicator were down by 26% (5.1k head) as recent rain slowed the supply of cattle to the yards. Feedlotters overtook the restockers as the largest buying group from last week. Roma and Wagga have the two largest contributions of the selling centres, both talk of a full field of buyers.
In the West, prices also rose for young cattle. The Western Young Cattle Indicator finished the week at 520 c/kg cwt, a rise of 20% week on week. Yardings were down by almost half to 364 head from 701. This strong increase week on week has closed the gap to the eastern counterparts from an 18% discount to a 15% discount.
Processor cow pricesrose 9% for the week, finishing the first selling week of winter at 221 c/kg lwt. Yardings for the indicator was back 13% on the previous week. Roma and Wagga again topped the list of the largest contributors to the indicator, with Wagga’s saleyard report mentioning that processors were not as active at the rail due to the backlog at abattoirs.
Restocker heifers rose slightly by 1% (3 c/kg) to average 250 c/kg for the week, again driven by tighter supply. On the other hand, restocker steer prices fell, ever so slightly by 0.5% (2 c/kg) to 330 c/kg. Yardings were back 48% for the week.
Processor capacity remains the bottleneck in the supply chain, as the tendered cattle from pastoral stations continue to come in droves following the muster at the conclusion of their wet season. This allows the processors to be more selective with what they price their buying grids at. For the last week of May the slaughter figure was up 55% on the same week last year and 47% on the 5-year average for the same week.
Next week
A short selling week for all states bar WA and QLD to celebrate the Kings birthday will see some sales not take place and yardings are likely to be down as a result. The majority of the rain in the north seems to have ended according to the BOM, with not a lot on the forecast.
Processor capacity will continue to remain elevated as most processors don’t have availability for at least the next month. This could lead to a more subdued market until the backlog reduces. It does point to opportunity for backgrounders and restockers though, especially those whose pastures just got a nice drink.
Have any questions or comments?
Click on table to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Mecardo
Categories
Have any questions or comments?
Northern needs support for restocker returns
The market was only headed in one direction this week, and that was down. Last week ended up being a record for yardings, so numbers
Dry May, but there is cause for optimism.
There are a myriad of weather forecasts out there, and most farmers will know you can usually find one with some rain on it. At
Market loses ground as autumn break still missing
The week started with a record number of cattle yarded at Wagga Wagga, with 8731 put through the ring on Monday. This followed on from
Slaughter set to swell?
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
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.
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.
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.