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.
A historically high cattle market has pushed cattle-on-feed numbers lower for the September quarter. Confidence in the sector has far from waned, however, with capacity,
National cattle yardings jumped 13% week-on-week, unsurprisingly putting downward pressure on prices, but the market still showed a level of resilience considering the increase in
The Australian Bureau of Statistics (ABS) released its quarterly Livestock Products report last week, and the cattle industry has been setting new records. It appears
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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.
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Data sources: Mecardo; Meat and Livestock Australia; Argus Meat and Livestock, BOM
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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.
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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.