Yardings skyrocketed off the back of stronger confidence in the market following the last two weeks of rain on the east coast. Almost every saleyard across the nation saw an increase, some over double the throughput compared to last week, as farmers looked to cash in on the recent price rises.
Initial throughput data from Meat and Livestock Australia
(MLA) shows an increase of 66% in cattle yardings across the nation compared to
last week, the highest weekly yardings seen since 2019. Despite the large
increase in supply, demand also improved with all but one indicator finishing
higher than the previous week.
Supply of cattle into the Feeder Steer Indicator lifted 71%
on the previous week, up to 12,920 head. Dubbo had the highest yarding with
over 2,000 head as farmers looked to cash in on recent price increases in the 2nd
last sale of the year. Feeder Steer prices finished the week at 305c/kg lwt up 4% from last week.
The Eastern States Young Cattle Indicator (EYCI) yardings
smashed last week’s levels rising 70% (11,091 head) to 27,008. Like the Feeder
Steer Indicator, this didn’t have a negative impact on price with it finishing
up 7c/kg on last week to 570 c/kg cwt. This price is now at the same level as
the winter plateau through June and July. Roma had the highest contribution with
over 5,000 head (19% of the total throughput) and averaged 12% over the
indicator at 638c/kg cwt.
Slaughter figures for the week ending the 1st of
December were slightly down on recent weeks, only 1% above the 5-year average.
In contrast, the three weeks prior saw weekly slaughter rates 5% or more above
the 5-year average. The next two weeks traditionally we see a surge in kill
rates before the Christmas wind down.
The 90CL beef export price for the week ending the 1st
of December followed its slight downward trend, ending 1.5% lower to 768 c/kg
in AUD terms. Despite the recent softening, US imported beef prices remain
historically strong as US meet buyers are looking to cover themselves for an expected
large drop in their domestic supply in the new year from recent record high
levels.
What does it mean?
Despite the substantial increase in throughput, strong
demand for all categories saw prices continue their upward trajectory, albeit
at a subdued rate. This is a positive signal that the market is finding new
support levels and may continue to rise. Next week should see strong yardings
as some saleyards have their final sale for the year and farmers look to
capitalise on recent price increases.
October has been a busy month at the nation’s saleyards as throughput smashes 5-year average levels. This week has seen yardings relax significantly from these
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Yardings skyrocket after price uptick
Initial throughput data from Meat and Livestock Australia (MLA) shows an increase of 66% in cattle yardings across the nation compared to last week, the highest weekly yardings seen since 2019. Despite the large increase in supply, demand also improved with all but one indicator finishing higher than the previous week.
Supply of cattle into the Feeder Steer Indicator lifted 71% on the previous week, up to 12,920 head. Dubbo had the highest yarding with over 2,000 head as farmers looked to cash in on recent price increases in the 2nd last sale of the year. Feeder Steer prices finished the week at 305c/kg lwt up 4% from last week.
The Eastern States Young Cattle Indicator (EYCI) yardings smashed last week’s levels rising 70% (11,091 head) to 27,008. Like the Feeder Steer Indicator, this didn’t have a negative impact on price with it finishing up 7c/kg on last week to 570 c/kg cwt. This price is now at the same level as the winter plateau through June and July. Roma had the highest contribution with over 5,000 head (19% of the total throughput) and averaged 12% over the indicator at 638c/kg cwt.
Slaughter figures for the week ending the 1st of December were slightly down on recent weeks, only 1% above the 5-year average. In contrast, the three weeks prior saw weekly slaughter rates 5% or more above the 5-year average. The next two weeks traditionally we see a surge in kill rates before the Christmas wind down.
The 90CL beef export price for the week ending the 1st of December followed its slight downward trend, ending 1.5% lower to 768 c/kg in AUD terms. Despite the recent softening, US imported beef prices remain historically strong as US meet buyers are looking to cover themselves for an expected large drop in their domestic supply in the new year from recent record high levels.
What does it mean?
Despite the substantial increase in throughput, strong demand for all categories saw prices continue their upward trajectory, albeit at a subdued rate. This is a positive signal that the market is finding new support levels and may continue to rise. Next week should see strong yardings as some saleyards have their final sale for the year and farmers look to capitalise on recent price increases.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, Steiner, Mecardo
Categories
Have any questions or comments?
Yardings back down to normal for now
October has been a busy month at the nation’s saleyards as throughput smashes 5-year average levels. This week has seen yardings relax significantly from these
Plenty of beef for the US
While beef export volumes have eased from the record highs of July, they continue to run well ahead of the average. The US market share
No steering clear of price falls
There was an inward shift in both supply and demand this week for the cattle market, resulting in lower prices across the board. Multiple saleyards
Lotfeeding capacity and utilisation on the rise
The number of cattle being finished on grain in Australia continues to rise according to the June quarter lotfeeding survey from MLA and ALFA. Feeder
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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.