Cattle maintains recent price highs

Demand from restockers, feedlots and processors continue to buoy prices across the east coast of Australia, despite dropping back from a record high. See what prices are doing here.

Cattle prices continue to maintain recent price trends. Picture: Chloe Smith

BEEF prices may have softened recently after hitting a new record, but young cattle prices are sitting more than 260c/kg higher than this time last year.

It comes as demand from restockers, feedlots and processors continues to buoy prices across the east coast of Australia.

The Eastern Young Cattle Indicator is at 754.25c/kg, down from the record high of 772c/kg in late June, but still up 263.25c/kg on the 419c/kg this time last year.

Victorian Farmers Federation livestock president Leonard Vallance said the well- timed autumn rain had created a “perfect storm” for high prices.

“We’ve got grass fever for restockers … people who’ve had no rains for five years now do, and we have a strong feedlot sector producing high-end products, factoring in the cost of grain and fodder, with hay still in short supply,” Mr Vallance said.

“There’s also export demand and domestic demand too, which has remained strong throughout the COVID-19 lockdown.”

Meat and Livestock Australia market analyst Adam Cheetham said despite the EYCI backing off from its recent record, prices still sat at a historically high levels.

“It’s a clear reflection of the demand across the three main markets: the processor, the feedlots and the restocker,” Mr Cheetham said.

“There’s certainly a lot of strength in the southern markets too, in particular between those processors and restockers, all vying for a limited pool of livestock.

“The general trends in the market have remained the same since (autumn) rainfall hit.”

The strength of the EYCI compared with this time last year, more than 260c/kg higher, was notable, Mr Cheetham said.

“Over the last five years, it’s hard to say what a normal year would be. The reason prices are so elevated is the dramatic change in the season, whereas this time last year we were still in the midst of extreme drought conditions,” he said.

Mr Cheetham said looking ahead and attempting to gauge where prices could go remained difficult.

“There’s no indicator that we will see prices fall … hopefully we’re through the worst of the COVID-19 demand (for meat), but we may have hit the top of prices,” he said.

“Cattle prices, we saw a surge in March and they have remained well within that record range, particularly for young cattle.”