The young cattle market headed in one direction this week, up. The rain-driven rally saw the Eastern Young Cattle Indicator tack on another 32¢ to see it just under the recent record of 888¢/kg cwt. Supply has been disrupted, but the rain has extended the life of the high-priced market with green paddocks in the east here for a while yet.
Figure 1 highlights the rainfall pattern across the nation this week. While it brought hardship and stock losses to some, for many regions, particularly in Queensland where La Niña hadn’t delivered on its promises, this week has been as good as it gets. Rainfall further south was also present and helped to lift restocker spirits in the southern regions.
Restocker Yearling Steers gained 39¢ in Queensland and a whopping 75¢ in NSW to 609¢/kg lwt. The finished market didn’t catch the same fever but still the National Heavy Steer Indicator gained 11¢ on last week. Medium steers on the other hand lost 12¢ to settle at 376¢/kg lwt.
East coast yardings were down 14% last week, to just shy of 37,000 head. Queensland throughput was a major driver, dropping 40% week on week, and that was before the rain hit. East coast slaughter continued to track along at recent levels with 98,769 head processed in the east.
The 90CL US frozen cow price slipped 1¢ in Australian dollar terms last week to 641¢/kg. In good news for export markets, the Australian dollar dropped 2.1% this week to 0.758¢, but with the rally in cattle prices, much of the benefit is likely lost for overseas buyers
The week ahead….
Extremely wet weather is a recipe for disruption, and we’ve already seen the impact this week with Australia’s largest abattoir JBS Dinmore in southeast Queensland closing until after Easter. Other plants have announced closures, in addition to the public holiday shutdowns, and this might be enough to see the market ease off in the coming weeks.
A recent query came across the desk relating to monsoon scenarios. A wet, or wetter than average, monsoon will obviously impact the market in different
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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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Young cattle market swimming in optimism
Figure 1 highlights the rainfall pattern across the nation this week. While it brought hardship and stock losses to some, for many regions, particularly in Queensland where La Niña hadn’t delivered on its promises, this week has been as good as it gets. Rainfall further south was also present and helped to lift restocker spirits in the southern regions.
Restocker Yearling Steers gained 39¢ in Queensland and a whopping 75¢ in NSW to 609¢/kg lwt. The finished market didn’t catch the same fever but still the National Heavy Steer Indicator gained 11¢ on last week. Medium steers on the other hand lost 12¢ to settle at 376¢/kg lwt.
East coast yardings were down 14% last week, to just shy of 37,000 head. Queensland throughput was a major driver, dropping 40% week on week, and that was before the rain hit. East coast slaughter continued to track along at recent levels with 98,769 head processed in the east.
The 90CL US frozen cow price slipped 1¢ in Australian dollar terms last week to 641¢/kg. In good news for export markets, the Australian dollar dropped 2.1% this week to 0.758¢, but with the rally in cattle prices, much of the benefit is likely lost for overseas buyers
The week ahead….
Extremely wet weather is a recipe for disruption, and we’ve already seen the impact this week with Australia’s largest abattoir JBS Dinmore in southeast Queensland closing until after Easter. Other plants have announced closures, in addition to the public holiday shutdowns, and this might be enough to see the market ease off in the coming weeks.
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Data sources: MLA, BOM, Mecardo
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Wet season fork in the road? We will know mon-sooner or later
A recent query came across the desk relating to monsoon scenarios. A wet, or wetter than average, monsoon will obviously impact the market in different
Sunshine State shines the brightest
Heavy rain in the southern areas of Queensland sent the restockers on a buying spree along with export buyers at the other end of the
EYCI’s big discount means plenty of room to move
The correlation between the Eastern Young Cattle Indicator (EYCI) and the 90CL US export beef price is primarily driven by our domestic supply and can
Buyers place their faith in youth
Restocker yearling steers performed best this week, improving 12¢ week on week to 358¢/kg lwt and judging from MLA saleyard reports it wasn’t hard to
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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.