Eastern Young Cattle Indicator hits record high

Cattle prices hit a record high today and prices could go even higher, according to industry experts.

The Eastern Young Cattle Indicator hit 754.75c/kg today.

CATTLE prices hit a record high today, breaking the magic 750c/kg.

The Eastern Young Cattle Indicator hit 754.75c/kg, surpassing the previous record of 744c/kg, set just last Thursday.

Monday’s new high was almost 30c/kg higher than the 2016 record of 725c/kg, and double the 363.25c/kg of 12 months ago.

And prices could go even higher, according to industry experts.

And while many producers and livestock agents anticipated a lift in prices when rain arrived, the speed of the price lift has left many in the industry gobsmacked.

Rabobank senior animal proteins analyst Angus Gidley-Baird said the strength of prices was a reflection of tight cattle supple following years of drought as much as a sign of strong demand.

“The record was there to be broken,” Mr Gidley-Baird said.

“It has shot up a lot quicker than what it did back in 2016 … give the lead-up that we’ve had, the continued high cattle slaughter, the low cattle inventory, all of that means you’ve got limited supply, the nature of the rain that’s been so widespread from northern Queensland all the way into Victoria … everyone is down on cattle numbers and looking for something to eat the grass.”

The heavy steer indicator was 340.75c/kg today and the medium cow indicator 337.50c/kg.

Mr Gidley-Baird said autumn weaner sales across NSW could see an increase in the number of calves on the market.

“ … it might be the first opportunity for producers to buy young heifers or stock for backgrounding,” Mr Gidley-Baird said.

Mecardo livestock analyst Matt Dalgleish said the ongoing coronavirus outbreak could potentially temper domestic conditions that could see cattle prices lift even higher.

“I can see it going above 800c/kg in winter. The only caveat would be to get it up there, we need finished and feeder prices to go up as well,” Mr Dalgleish said.

“There’s a bit of concern regarding global cattle prices due to coronavirus, the US live cattle futures market took a bit of a dive in late February, the 90 chemical lean indicator has come off a bit, and the EYCI has now got a bit of a premium.

“The only thing that might take a little bit of steam out of the young cattle market is if coronavirus starts to become problematic (for trade).”