Young cattle indicator record: Weaner calf sales drive national price higher
“Beyond the realms of logical expectation”: Weaner sales across southern Australia have resulted in record high prices for the eastern indicator.
YOUNG cattle prices have once again broken price records, surprising the industry.
The Eastern Young Cattle Indicator this week reached the new high of 841.75c/kg.
In comparison, the EYCI same time last year was 505.25c/kg, a rise of more than 300c/kg.
Rabobank senior animal proteins analyst Angus Gidley Baird said while young cattle prices were substantially stronger, this time last year most of the country was still dry.
“Remember in the context of year-on-year, this time last year it was still very dry,” Mr Gidley-Baird said.
“The big price lift occurred through January into February, and by the time you get to February prices were in the mid 700c/kg range.”
The recent strength of weaner cattle across southern Victoria this month is directly playing into the strength of the EYCI, Mr Gidley-Baird said.
“I was expecting to see strong prices … it’s gone beyond the realms of logical expectation,” Mr Gidley-Baird said.
“Everything outside of the Australian domestic cattle herd complex suggests prices should be lower, the appreciating Australian dollar, African Swine Fever and China’s pork production is coming back online, the US are increasing red meat supplies and exports. Everything else would suggest prices shouldn’t be this high.”
Hot competition for young weaner-weight cattle across saleyards in Victoria and South Australia this month has fuelled the indicator prices.
“Those cattle, about 180-300kg in weight sold in all key saleyards all go into the EYCI complex,” Mr Gidley-Baird said.
“With current seasonal conditions, I don’t see demand dropping off in a hurry.”
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