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.
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
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.
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.
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.
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.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Mecardo
Categories
Have any questions or comments?
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
The recipe for higher cattle prices
The best recipe for stronger cattle prices is strong beef export values, and rain. The last week has delivered on both fronts, with major livestock
Rain revival for the cattle market?
Widespread and heavy rain is falling in key cattle country, and it’s enough to disrupt the flow of cattle to market. After short weeks due
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.