From Charter Towers to Gunnedah, finished stock prices were typically steady but lighter weights were drawing more interest and competition from buyers. All Queensland indicators improved, and NSW saw sideways or minor ups and downs in pricing. In Victoria, prices dragged lower with the exception of yearlings bought by restockers. Improving quality did not result in improved pricing in Wodonga, and Shepparton buyers were up and down in line with the weight of the stock available.
With the north and south see-sawing on the price front, the result was The Eastern Young Cattle Indicator (EYCI) rising 5¢ week on week to 628¢/kg cwt. The majority of other national indicators finished the week in a narrow range of 2¢ decline to 4¢ gains compared to last week as the cattle market looks to shift into the summer phase of the market.
It was a great week out west with Muchea experiencing tight supply but strong yearling demand. Mount Barker saw improvement across the board with finished steers performing just as well as the younger, lighter offerings. The result was a 77¢ jump in the Western Young Cattle Indicator (WYCI) to 600¢/kg cwt and a 54¢ increase in the WA Heavy Steer Indicator to 275¢/kg lwt.
Last week East Coast cattle slaughter reached 140,871 head, the highest figure since April 2020. This was at a peak time for pandemic-driven policy measures with borders closing and major events cancelled. Numbers are similar but the situation is completely different. Year-to-date East Coast slaughter is 9% higher YoY and is at its highest point since 2019 (drought liquidation). Year-to-date beef exports are 25% higher and at their highest point since 2015. Thankfully this time around this level of production isn’t panic and uncertainty-driven but rather a more harmonious result of higher supply and stronger demand.
This week on Mecardo, Angus Brown looked at historical trends for cattle pricing. This season compared to the last few seasons has seen more typical price behavior based on the seasons. What normally follows an easing October market is a steady rise over November to December for cattle prices. This depends on when the Northern wet season kicks off.
As we take a closer look at the fluctuations in the Australian cattle market, it’s evident that there are various factors at play determining the prices of cattle across different regions. From Queensland to New South Wales, and down to Victoria, the market is responding in unique ways to the supply and demand dynamics.
When it comes to understanding the trends in Australian cattle pricing, it’s crucial to keep an eye on key indicators like the EYCI and the WYCI. These indicators provide valuable insights into the overall health of the market and can help both buyers and sellers make informed decisions.
In Queensland, we’ve seen improvements in pricing, indicating a positive trend for producers in the region. On the other hand, NSW has experienced some fluctuations, with prices remaining relatively stable overall. Victoria, however, has faced challenges, with prices declining in most categories except for yearlings bought by restockers.
What does this mean for cattle producers in Australia? The market is constantly evolving, and it’s essential to stay informed about the latest developments to navigate the changing landscape effectively.
One of the key takeaways from recent market trends is the importance of quality in determining pricing. Despite improvements in quality, prices in certain regions like Wodonga have not seen a corresponding increase. This highlights the need for producers to understand the specific demands of buyers and tailor their offerings accordingly.
The increase in East Coast cattle slaughter numbers is significant, reaching the highest figure since April 2020. This surge in production can be attributed to various factors, including evolving market conditions and changing consumer preferences. Year-to-date beef exports are also on the rise, reflecting a growing demand for Australian beef products globally.
As we delve deeper into the intricacies of the cattle market, it’s crucial to acknowledge the impact of external factors on pricing and production. From pandemic-induced policy measures to seasonal shifts, there are numerous elements influencing the market dynamics in Australia.
Looking ahead, the summer phase of the market is expected to bring further changes and challenges for cattle producers. Understanding historical pricing trends and seasonal variations can provide valuable insights into what to expect in the coming months.
In conclusion, the Australian cattle market is a dynamic and complex ecosystem that requires constant monitoring and adaptability. By staying informed about market trends, producers can position themselves for success and navigate the evolving landscape with confidence.
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