There was very little movement in the cattle market this week, with winter weather now impacting the quality of stock available. This saw processors shift their attention towards cows and away from heavy and trade type cattle, as variations were likely to be less pronounced. Throughput has fallen slightly as expected but remains historically high.
Nationally, processor cows continued their price rise this week, finishing at 310¢/kg, a level we have not seen since April. This was despite processor cows having by far the largest number of eligible cattle compared to all major indicators, with nearly 2,500 more than the previous week. Dairy cows also ended the week higher and now trade at the biggest premium to year-ago levels of all Meat and Livestock Australia price gauges.
Slaughter fell by close to 6,000 head last week but remains 9 percent, or nearly 13,000 head, above the same week the previous year and still ranks among the top five highest slaughter figures for this year so far. Yardings increased by more than 10,000 head this week, rising back above the three-year average, with most of the change coming out of Queensland and northern NSW.
Heavy steers experienced the most downward pressure this week, likely due to the quality available as previously mentioned, losing about 18¢/kg to finish at 364¢/kg. They are now trading at the lowest premium to year-ago levels of all the major indicators. Heavy steers also had the smallest number of eligible cattle this week, with about a third coming out of Roma and Dalby in Queensland.
The Eastern Young Cattle Indicator held fairly firm at 725¢/kg, with around 45 percent of all EYCI eligible stock coming out of Roma and Dalby. However, both yards recorded prices below the average, while all major NSW yardings including Dubbo, Wagga Wagga, Gunnedah, and Forbes were well above it. Restockers and feeders purchased nearly equal numbers, but feeders paid 40¢/kg more.
The national Feeder Steer Indicator lost 5¢/kg to land at 412¢/kg, bringing it right in line with the five-year average. Argus Meat & Livestock reported their northern feeder price rising by 2¢/kg this week to 384¢/kg, as southern lotfeeders have to look north to acquire the cattle they need. They also reported increased interest among feeders in buying heifers to fill the void rather than operate below capacity. Nationally, MLA’s new Feeder Heifer Indicator sits at 344¢/kg; however, in NSW, that figure is 377¢/kg.
What does it mean?
With little movement in the supply and demand equation for cattle at the moment, we can expect the market to continue on its current trajectory for the time being. We are still likely at least a month away from restockers in the south looking for opportunities in any volume, and feeders are currently filling the gap from ample supply in the north, which has been having better seasonal conditions.
A historically high cattle market has pushed cattle-on-feed numbers lower for the September quarter. Confidence in the sector has far from waned, however, with capacity,
National cattle yardings jumped 13% week-on-week, unsurprisingly putting downward pressure on prices, but the market still showed a level of resilience considering the increase in
The Australian Bureau of Statistics (ABS) released its quarterly Livestock Products report last week, and the cattle industry has been setting new records. It appears
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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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Winter chill weighs on cattle weights
Nationally, processor cows continued their price rise this week, finishing at 310¢/kg, a level we have not seen since April. This was despite processor cows having by far the largest number of eligible cattle compared to all major indicators, with nearly 2,500 more than the previous week. Dairy cows also ended the week higher and now trade at the biggest premium to year-ago levels of all Meat and Livestock Australia price gauges.
Slaughter fell by close to 6,000 head last week but remains 9 percent, or nearly 13,000 head, above the same week the previous year and still ranks among the top five highest slaughter figures for this year so far. Yardings increased by more than 10,000 head this week, rising back above the three-year average, with most of the change coming out of Queensland and northern NSW.
Heavy steers experienced the most downward pressure this week, likely due to the quality available as previously mentioned, losing about 18¢/kg to finish at 364¢/kg. They are now trading at the lowest premium to year-ago levels of all the major indicators. Heavy steers also had the smallest number of eligible cattle this week, with about a third coming out of Roma and Dalby in Queensland.
The Eastern Young Cattle Indicator held fairly firm at 725¢/kg, with around 45 percent of all EYCI eligible stock coming out of Roma and Dalby. However, both yards recorded prices below the average, while all major NSW yardings including Dubbo, Wagga Wagga, Gunnedah, and Forbes were well above it. Restockers and feeders purchased nearly equal numbers, but feeders paid 40¢/kg more.
The national Feeder Steer Indicator lost 5¢/kg to land at 412¢/kg, bringing it right in line with the five-year average. Argus Meat & Livestock reported their northern feeder price rising by 2¢/kg this week to 384¢/kg, as southern lotfeeders have to look north to acquire the cattle they need. They also reported increased interest among feeders in buying heifers to fill the void rather than operate below capacity. Nationally, MLA’s new Feeder Heifer Indicator sits at 344¢/kg; however, in NSW, that figure is 377¢/kg.
What does it mean?
With little movement in the supply and demand equation for cattle at the moment, we can expect the market to continue on its current trajectory for the time being. We are still likely at least a month away from restockers in the south looking for opportunities in any volume, and feeders are currently filling the gap from ample supply in the north, which has been having better seasonal conditions.
Have any questions or comments?
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Click on graph to expand
Data sources: MLA, Argus, Mecardo
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Have any questions or comments?
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The Australian Bureau of Statistics (ABS) released its quarterly Livestock Products report last week, and the cattle industry has been setting new records. It appears
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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.