UPDATED 5.30pm: AFTER finishing last week at an all-time high of 476.5 cents a kilogram, the Eastern Young Cattle Indicator (EYCI) broke new records to leap up 7c today to 483.50c/kg - up 10c on the same time last week.
At the close of last Thursday’s markets, , Meat and Livestock Australia reports trade steers had improved 6c week-on-week to 282c, while medium steers gained 2c, to 246c/kg live weight. Feeder steers were steady at 265c, while the heavy steer indicator lifted 3c, to 265c/kg lwt. Medium cows improved 1c, to 185c/kg lwt.
Throughput at Roma Prime in Queensland doubled to 1686, with more bullocks penned than recent sales. There was increased processor activity and prices improved. To slaughter, C4 bullocks improved 3c, averaging 238c and selling to 240c, while medium D4 grown heifers jumped 9c, averaging 222c/kg. Medium D3 cows improved 5c, averaging 185c, and heavy D4 lines gained 4c, averaging 205c/kg.
Supply was steady at Dubbo, NSW, with 4700 head yarded. Quality improved on last week and the occasional price broke through 300c/kg. Medium C2 yearling feeder steers were steady, at 271c, while the same weight C3 heifers to the trade jumped 26c, averaging 272c/kg. Heavy C4 bullocks to slaughter gained 21c, averaging 286c and selling to a top of 303c, and heavy D4 cows improved 9c, averaging 208c/kg.
In Victoria, consignments to Bairnsdale declined 14 per cent, with 1165 head yarded. The usual panel of buyers operated in a mostly dearer market, especially amongst the prime categories. Heavy C3 yearling steers to the trade jumped 29c, averaging 291c, while heavy D3 heifers to the same orders gained 11c, averaging 258c/kg. Heavy D3 grown steers to slaughter jumped 28c, averaging 286c, and heavy D3 cows improved 5c, averaging 213c/kg.
Despite a record number of cattle coming onto the market so far in 2015 – a factor that normally places heavy downward pressure on prices – the cattle market has continued to reach new highs, highlighting the intensity of demand for Australian beef.
This also paints a positive picture for the strength of the Australian cattle market, says MLA, knowing that the consequence of the record cattle turn-off will be significantly fewer cattle available for sale in coming years.
The weaker $A coinciding with tight US beef production, declining tariffs on Australian beef into Japan and Korea and the burgeoning demand from a range of Australia’s developing markets, are all working in favour of Australian cattle prices.
While this is great news for producers with cattle to sell, it could be perceived as a double-edged sword for those who have liquidated and are looking to re-enter the market – however, waiting for prices to recede below five-year average levels will take some time, especially considering how tight the Australian cattle pool will be.
