Cattle prices soar to even greater heights as EYCI hits 788c/kg

Australian finished cattle are now the most expensive in the world. And prices domestically continue to surge to new heights. Here’s what an expert says may be in store next.

Young cattle prices continue to make price gains. Picture: Chloe Smith

UPDATE: YOUNG cattle prices — already the most expensive in the world on a key measure — have soared even higher.

The Eastern Young Cattle Indicator reached 788.25c/kg on Wednesday night, the highest price recorded this year and 283c/kg higher than the 505.25c/kg recorded at the same time last year.

The EYCI rallied late last week, with prices lifting from 776c/kg to 778c/kg within two days.

Prices for young cattle have reached unprecedented highs this year, first surpassing the 760c/kg mark in March.

Thomas Elders Markets analyst Matt Dalgleish said with finished cattle prices sitting at 325c/kg, there was scope for young cattle prices to surge even higher, possibly beyond 800c/kg.

“At 325c/kg live weight for finished cattle, you can still make money if you’re spending 800c/kg on young cattle,” Mr Dalgleish said.

“While there’s confidence in that finished cattle market, that will be enough to get restockers interested in paying higher prices for the young cattle. We’re not far away from prices becoming uneconomic, but there’s still room to probe higher.”

Mr Dalgleish said Australian finished cattle were the most expensive cattle in the world.

“Usually in terms of countries we compete with, the US is the key one. The last time we were more expensive was back in 2016 when we had tight supply and a good season. Right now we’re back up over the US again, that’s where we are,” Mr Dalgleish said.

A combination of tight supply and an excellent season continued to drive prices high, Mr Dalgleish said.