EYCI cools as hot March bites

At the close of markets on Tuesday evening the Eastern Young Cattle Indicator (EYCI) was on 590 cents a kilogram (carcase weight). 

This was about 4.25c/kg lower than a week ago and 11.25c/kg cheaper than at the start of March. 

Most centres recorded averages below the EYCI figure on Tuesday, indicating there may be further for the benchmark price to fall. 

The exception was at Roma prime sale in Queensland where the price for vealers and yearlings averaged 612.75c/kg, which was well above the EYCI. 

Supply last week was also up, according to National Livestock Reporting Service (NLRS) figures, although early indicators this week suggest some producers were spooked by the big numbers last week and held cattle back from Monday and Tuesday’s sales.

Last week there were nearly 28,000 head offered via NLRS reported centres in NSW, which was about 2350 head more than the week before.

Last week the number offered at Dalby in Qld was up 70 per cent from the previous week to 5567 head, according to NLRS, and included cattle from South Australia and western NSW. 

A similar boost in offerings last week was also recorded at Tamworth, Gunnedah, Dubbo and Shepparton in Victoria, while Roma store sale in Qld held steady at 6000 head – which is still high in historic terms, NLRS reported.

Despite the heat, but reflective of the considerably smaller cattle herd (estimated at 26.2 million head), Meat and Livestock Australia reported weekly slaughter continued to track well below year-ago levels. 

The eastern states indicative figure was 140,208 head last week, down 16pc from the same week last year, and this was a trend that was sure to continue throughout the year.

MLA has predicted the demand from restockers may wilt somewhat, while any further rise in the number of cattle on the market will be limited by the small herd.

At the same time, Australian Bureau of Statistics (ABS) has reported Australia produced almost 150,000 tonnes (carcase weight) of beef in January, back 18pc year-on-year and well below the average monthly volume for 2015 of 209,000t.

Meanwhile, Australian beef exports in February were back 14pc year-on-year, reflecting the continued decline in cattle slaughter during the past six months. 

The fall was driven by grassfed product, according to a recent MLA report, with grainfed exports in February lifting 13pc year-on-year, to 23,376t (shipped weight).

Combining January and February figures, this year was the second strongest start to grainfed beef exports on record.