East coast yardings, week on week saw a healthy increase, despite Victoria continuing it’s headlong rush into the abyss, with NSW again taking up the slack. VIC yarding’s fell again, by 25%, to land at levels less than half of a month ago. In contrast, NSW almost doubled, up 85% from the prior week, while QLD and SA backtracked marginally. Overall an 11.7% increase in numbers saw 40,625 cattle yarded on the east coast for the week ending 7th August, which is 35% lower than the same time last year.
Slaughter numbers have stabilised, lifting 3% on the week prior. When we look closer at what the states are doing, there is a bit of a mixed bag of movements. VIC slaughter was almost unchanged from last week, while QLD increased 10%, offset by 7% falls in NSW and a 20% drop in SA. A total of 117,095 cattle were processed, which is down 20% compared to the same time in 2019.
JBS has announced a 2-week minimum shutdown of its Dinmore plant, which, with a 3,400 head daily capacity, is one of the largest beef processing facilities in Australia. JBS has stated that the plant had been suffering losses for a long time this year, citing operations tracking at below 50% capacity since May due to low supply of suitable cattle, coupled with international pricing headwinds and a high Australian dollar, and distortions created by the federal government’s job keeper program. No commitment has been made to reopen, though the plant has been seen to return after a period of closure back in 2014.
Down south, in Victoria, JBS has closed its Brooklyn plant indefinitely as COVID-19 operating restrictions on meat processing are reportedly making continued operations untenable until the situation improves.
The Eastern Young Cattle Indicator (EYCI) again displayed stability, only inching up another 0.2% on the prior week, settling at 762¢/kg cwt. Most categories displayed minor weakness this week, apart from restockers continuing their rise, heavy steers leapt enthusiastically, defying the trend, while vealers returned to a downward slide, backtracking on some of the gains they made last week.
Restockers continued their climb, adding 7¢ (2%), to end the week at 446 ¢/kg lwt, and heavy steers were a surprise performer, spiking 20¢ (5%) to reach up to 378 ¢/kg lwt. In contrast, processor and feeder steers hesitated, losing 3¢ and 2¢ to respectively settle at 401 ¢/kg lwt and at 390 ¢/kg lwt. Medium cows also had a little stumble, shedding 4¢ to land at 268 ¢/kg lwt. Vealers couldn’t keep up the momentum of last weeks gains, losing 11¢, to finish at 411 ¢/kg lwt.
On the export front, the 90CL Frozen Cow price has been unfazed by our strong dollar, ambling upward by 6¢ to settle at 677¢/kg. It is, sadly, 4% below the level we saw this time last year. The Aussie dollar displayed stability over the week, barely backtracking a whisker, to settle at 0.716 US.
Yardings & Heavy steers up, Restockers keep on buying
What does it mean?
The closure of JBS processing sites in both QLD and VIC is likely to suppress slaughter numbers, and yardings as producers lose confidence and hold off going to market. Good rainfall over the last week, across most farming districts right down the eastern half of the country, especially NSW have topped up soil moisture levels in paddocks, providing ample encouragement to hold onto cattle or continue restocking.
Have any questions or comments?
Click on figure to expand
Click on figure to expand
Click on figure to expand
Data sources: MLA, Mecardo
Categories
Have any questions or comments?
Cattle price volatility lower as supply and demand find balance
Cattle market volatility has waned recently. The wild swings of 2023 saw prices move up to 70% across the course of two months. Thus far
Weather whiplash creates erratic cattle market
Roads and paddocks have begun to dry out allowing the backlog of cattle from soaked areas of Queensland and New South Wales to hit the
US herd build provides a boost
The long-predicted slowdown in US beef production has seemingly come into play this year, and Australian beef is filling some of the production gaps. Total
All hands on deck clearing cattle
Young cattle prices have bounced back after the recent rain, improving 28ȼ to 626ȼ/kg cwt. While rain helps limit the flow of cattle at one
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.
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.
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.