The cattle market in Australia remains strong and resilient, with pricing holding steady despite an increase in supply. Last week saw a significant jump in the number of cattle being yarded, which was well above the 5-year average for the same period. This influx of supply has been supported by slaughter capacity, but the key to maintaining pricing will rely on the activity of restockers and feeders in the upcoming weeks.
Despite a decrease in young cattle yardings on the East Coast, the Eastern Young Cattle Indicator (EYCI) saw a slight decline, finishing at 622¢/kg. The drop in restocker and feeder interest contributed to a softer market. On the other hand, the Western Young Cattle Indicator also experienced a decrease, settling at 568¢/kg, although it remains higher than this time last year by 85¢.
Scarcity in finished steers at the yards led to an increase in the national Heavy Steer Indicator, which rose by 15¢ to 341¢/kg. However, other indicators such as Feeder steers and Processor cow indicator saw declines of 4¢ each, with prices resting at 349¢/kg and 273¢/kg, respectively.
Angus Brown provided insights on beef exports in a recent update on Mecardo, highlighting that while exports have slightly eased from previous highs, they remain above last year’s levels and the 5-year averages. The US continues to dominate the market share, but according to Steiner, US imported beef prices have not seen significant increases in the last quarter.
In terms of pricing, the US¢/lb price for the 90CL beef has been trading within a narrow range between 283 and 291 US¢/lb since the beginning of the financial year. This stability indicates that exporters and importers are content with the current levels, despite fluctuations in the exchange rate. Last week, the 90CL averaged 922¢/kg in Australian dollar terms, reaching the 95th percentile for pricing this decade. This suggests that the current price levels are favorable for the equilibrium of export beef prices.
The consistent performance of the cattle market in Australia reflects the strength and resilience of the industry. Despite fluctuations in supply and demand, pricing has remained steady, showcasing the adaptability of stakeholders within the market.
As we look towards the future, it will be essential for restockers and feeders to maintain their activity to support pricing levels in the face of increased supply. The performance of key indicators such as the EYCI and the Heavy Steer Indicator will provide valuable insights into the market trends and potential opportunities for investors and industry players.
In conclusion, the Australian cattle market continues to demonstrate its robustness and resilience in the face of changing market dynamics. Stakeholders across the industry will need to remain vigilant and proactive to navigate the evolving landscape successfully. By staying informed and responsive to market conditions, participants can position themselves for success in the dynamic world of cattle trading.
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