The Eastern Young Cattle Indicator (EYCI) continues to track higher, lifting 22¢ to 894¢/kg cwt, reflecting the recent strength of feeder and restocker demand.
Per MLA saleyard reports, southern operators pushed cull cows higher in Roma, and restocker and feeder buyers were keen in Dalby. A large yarding in Dubbo didn’t scare feeder buyers off as markets remained firm. The supply drop in Wagga impacted the quality of the yarding, but bids were still higher for the younger cattle available.
The national processor cow indicator rose 13¢ to 368¢/kg lwt, and yearling steers improved 11¢ to 487¢/kg lwt. The rest of the indicators averaged single-digit improvements.
A jump in numbers in the yards in Queensland was outweighed by a drop in numbers in NSW and Victoria. Rain played a role in keeping stock at home as the south got a drink. NLRS indicative yardings show a 9% decline week on week to 59,697 head. Tipping the balance in favour of price this week was processor demand, which remains strong and consistent. Weekly slaughter has averaged 153,000 head since the start of winter, and last week’s figure was within 1% of this number.
After a record quarter of beef production (2.75 million tonnes produced April to June), Jamie-Lee Oldfield on Mecardo this week dived into the slaughter numbers to see how much is left in the tank on the supply front (read more here). Q3 slaughter is typically the highest, but first-half slaughter is already 13% higher year on year. If Q3 slaughter were to decline 7% it would still be at historic highs, so demand looks robust enough to provide price support over spring even if the foot comes off the gas.
Next week
Traditionally, cattle prices will begin to track lower as we farewell winter. Given strong processor demand and rising export prices again this week, there’s likely a little bit more in the tank for cull cows.
The latest Beef Producer Intentions Survey (BPIS), undertaken by Meat & Livestock Australia with results released this week, shows overall positivity in the industry, with
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.
Young cattle tick higher as rain holds some stock back
Next week
Traditionally, cattle prices will begin to track lower as we farewell winter. Given strong processor demand and rising export prices again this week, there’s likely a little bit more in the tank for cull cows.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: Mecardo; Meat and Livestock Australia; Argus Meat and Livestock, BOM
Categories
Have any questions or comments?
Cattle restockers awaken
There has been some sentiment shift in cattle markets, and as usual it’s more to do with the weather than anything else. Restockers are back
What next after China?
After some rapid improvement in the last few weeks, the major saleyard indicators saw some minor decline this week as the market adjusts to new
Monster May for beef exports as China quota looms
The scramble to get beef into China before Australia’s quota is filled for the year, along with continued soaring demand from the US, has pushed
Demand swings back towards the sellers favour
The latest Beef Producer Intentions Survey (BPIS), undertaken by Meat & Livestock Australia with results released this week, shows overall positivity in the industry, with
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.