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 remain that young cattle continue to trade above month-ago levels. Yardings picked up marginally after last week’s lull and consequential dip in slaughter, as the Eastern Young Cattle Indicator rose to its highest level for the year. Despite the cold starting to truly set in, the market seems to be holding fairly steady as we head toward the traditional seasonal high.
Queensland dominating supply also remains the status quo, with 37% of all EYCI eligible stock sold through the Roma Store sale, and a further 15% (the next largest yarding) coming from Dalby. This saw the QLD average sitting at 997¢/kg comparative to NSW where it was 1053¢/kg. Also continuing recent trends was where the buying demand came from, as restockers purchased over half of them and rose by 14¢/kg, compared to the overall EYCI rise of just 4.5¢/kg for the week. However, it is Feeder buyers who are currently paying the most for EYCI eligible stock, at 22/kg more than restocker purchasers.
Nationally the feeder steer indicator fell by 11¢/kg this week, despite throughput numbers being fairly firm on the previous week. It was some small yardings with much poorer results which drug this price down, as the top eight yardings size wise all sat above the average indicator price of 544¢/kg. Feeder heifers fared better, losing just 4¢/kg for the week, and operating at a 156¢/kg premium to the same time last year – the second highest of any major national indicator after restocker steers.
Which takes us to restocker steers, which experienced the largest price increase week-on-week, climbing 15¢/kg to 561¢/kg. Roma Store had a whopping 63% of the throughput and averaged 576¢/kg. The National Livestock Reporting Service quoted all regular buyers and a southern influence present at what was a “very solid to dearer” market, “especially for store cows back to the paddock”. Nationally processor cows lost 2¢/kg this week and are sitting nearly firm on month-ago levels, while heavy steers picked up 14¢/kg.
The cattle yarding rose about 5000 head on the back of last week’s low, which was the lowest non-public holiday impacted yarding week so far this year. There has now only been three weeks of yardings higher than Meat and Livestock Australia’s rolling three-year average since the start of May. That said, year-to-date slaughter according to weekly NLRS figures is still sitting 8% higher year-on-year, with the average weekly figure also 8% above the same time last year.
Next week
We are getting close to the time where the cattle market prices generally have a seasonal peak before trending slightly lower. If seasonal conditions and short supply continue as they are, we should see continued support of current levels instead.
Australia’s live cattle export numbers lifted significantly in July but remain subdued for the year-to-date compared to the five-year-average. More competition for lower supply and
The cattle market felt the chill of mid-winter this week as prices fell across the board despite slightly lower throughput. Support remains seemingly strong in
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.
Yardings down since May but year-to-date still higher
Queensland dominating supply also remains the status quo, with 37% of all EYCI eligible stock sold through the Roma Store sale, and a further 15% (the next largest yarding) coming from Dalby. This saw the QLD average sitting at 997¢/kg comparative to NSW where it was 1053¢/kg. Also continuing recent trends was where the buying demand came from, as restockers purchased over half of them and rose by 14¢/kg, compared to the overall EYCI rise of just 4.5¢/kg for the week. However, it is Feeder buyers who are currently paying the most for EYCI eligible stock, at 22/kg more than restocker purchasers.
Nationally the feeder steer indicator fell by 11¢/kg this week, despite throughput numbers being fairly firm on the previous week. It was some small yardings with much poorer results which drug this price down, as the top eight yardings size wise all sat above the average indicator price of 544¢/kg. Feeder heifers fared better, losing just 4¢/kg for the week, and operating at a 156¢/kg premium to the same time last year – the second highest of any major national indicator after restocker steers.
Which takes us to restocker steers, which experienced the largest price increase week-on-week, climbing 15¢/kg to 561¢/kg. Roma Store had a whopping 63% of the throughput and averaged 576¢/kg. The National Livestock Reporting Service quoted all regular buyers and a southern influence present at what was a “very solid to dearer” market, “especially for store cows back to the paddock”. Nationally processor cows lost 2¢/kg this week and are sitting nearly firm on month-ago levels, while heavy steers picked up 14¢/kg.
The cattle yarding rose about 5000 head on the back of last week’s low, which was the lowest non-public holiday impacted yarding week so far this year. There has now only been three weeks of yardings higher than Meat and Livestock Australia’s rolling three-year average since the start of May. That said, year-to-date slaughter according to weekly NLRS figures is still sitting 8% higher year-on-year, with the average weekly figure also 8% above the same time last year.
Next week
We are getting close to the time where the cattle market prices generally have a seasonal peak before trending slightly lower. If seasonal conditions and short supply continue as they are, we should see continued support of current levels instead.
Have any questions or comments?
Click on graph to expand
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?
A shift in destination and a fall in price
With quotas filled in key export markets, and some shifting sentiment in another, cattle exports are in a state of flux. With uncertainty often comes
Feeder fountain coming from the North
More rainfall in the South and a drop in throughput overall wasn’t enough to rally cattle prices this week. The market is still experiencing symptoms
Live export trade slips as domestic market soaks up supply
Australia’s live cattle export numbers lifted significantly in July but remain subdued for the year-to-date compared to the five-year-average. More competition for lower supply and
The north-south divide is opening up again for young cattle
The cattle market felt the chill of mid-winter this week as prices fell across the board despite slightly lower throughput. Support remains seemingly strong in
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.