EYCI surges to 472.5c/kg

And with supply expected to drop throughout winter, agents believe prices are unlikely to take a huge dent any time soon.

The Eastern Young Cattle Indicator (EYCI) hit an all-time record of 472.5 cents a kilogram on Wednesday.

It has also held at 472.5c/kg on Thursday.

High prices are being achieved across several categories.

This week, the National Livestock Reporting Service (NLRS) recorded grown steers making 261c/kg, young cattle weighing between 330kg and 400kg at 269.5c/kg and cows weighing between 400kg and 520kg reached 189.2c/kg.

Tamworth Livestock Selling Agents Association president Scott Simshauser said the northern cattle market was strong, particularly for heavy finished cattle and feeder yearlings.

"It really is a combination of factors, such as shorter supply and strong exports," he said.

Mr Simshauser said some of the dearer prices extended to secondary quality cattle, and he expected the high prices to hold.

"There could be a supply issue through the colder months, through June, July and August," he said.

"Numbers at Tamworth have been strong lately but we do draw cattle from across a big area."

He expected numbers to drop through winter, particularly as there had also been evidence of producers holding onto their younger females.

"There seems to be a retention of quality heifers, and also an increase of people buying heifers," he said.

Some producers had been looking ahead to the older female market to focus on breeding.

This focus on breeding had brought about a noticeable trend in the saleyards in the past few months.

"About 18 months ago there would have been a pen of beautiful quality, top-of-the-drop Angus heifers, and the buyers would have been the abattoirs," Mr Simshauser said.

"Now, it would be unlikely those heifers would even be for sale, as they would be retained for breeding purposes, however, if they were for sale the buyers would not only be the abattoirs, but also feeders and other producers.

"What this means is that producers are having a big impact on the market, whereas in the past two years producers weren't having control of the market."

However, yardings would remain strong as producers positioned themselves for winter.

A yarding of about 2500 was expected for?Friday's Tamworth store sale, with cattle offered from producers who didn't want to hold onto their stock through winter, Mr Simshauser said.

"That will be a great opportunity for them to sell given the high cattle prices," he said.

He said the region had received scattered rain, but there were still odd dry pockets, particularly further west, and graziers were hoping for good winter rain.

In the south of the state, quality cattle have been drawn to Wagga Wagga from areas such as Cooma, Bombala and Lake Cargelligo, contributing to strong yardings at the selling centre in the past eight weeks or so, usually in the vicinity of 4000, said Rodwells and Company Wagga Wagga livestock agent Peter Power.

Mr Power said well-finished heavyweight steers and heifers were selling particularly well in the region.

"The sex of the cattle doesn't matter, people are chasing the weights," Mr Power said.

He said good prices had been achieved for the better bred Angus and Hereford weaner cattle.

Contributing to strong prices seen at Wagga Wagga was the good quality and supply of prime cattle being sourced from throughout the Riverina and other areas in southern NSW; Mr Power said there had been big numbers of well-bred cattle entering the market, and quality had held up very well.

Mr Power said he expected the cattle market to maintain good prices.

"Prices will hold because of a lack of numbers, but it should also level itself out,"?he said.

"There will be a correction - there always is - but it won't crash."

He said strong yardings at Wagga had been prompted by the high prices and producers looking to get optimum returns, but numbers are expected to drop off in winter.

"If any farmer has prime cattle, they are mad if they don't take the money and run," he said.

RH Blake and Company livestock manager Mark Logan, Wagga, said heavy steers were making near $1800 a head at Monday's prime sale.

He said the overseas market and the lower Australian dollar had contributed to the strong cattle market, and expected prices to hold.