Cattle price surge: EYCI continues to rise, breaking another record
Australian cattle prices have broken a new record, with the EYCI at a staggering 200c/kg higher than at this time last year.
UPDATE: The Eastern Young Cattle Indicator has surged to 907.52c/kg today, more than 200c/kg higher than prices recorded same time last year.
Yesterday cattle prices surged to a record high and broke the 900c/kg barrier, driven by rainfall in Queensland and tight cattle supply.
But one industry expert has questioned how much higher prices can go, as the finished end of the cattle market refuses to budge.
Thomas Elders Markets analyst Matt Dalgleish said the movement in price was in response to rainfall in Queensland, which unlike recent floods in NSW, didn’t disrupt the industry.
“Queensland got some areas of rain and it just demonstrates how they’ve got the opportunity with what’s on the ground (grass),” Mr Dalgleish said.
“The rain coming could be enough to push us up to the 920c/kg to 930c/kg mark, but it’ll be interesting to see if we go beyond that.”
While prices for young cattle could continue to climb in coming weeks, Mr Dalgleish said there was limited upside for the finished end of the market.
“Demand fundamentals are fairly strong, and supply is still tight, it’s fuelling this rally,” Mr Dalgleish said.
“But without those finished cattle prices moving higher, there’s limited scope.”
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