Record breaking cattle prices continue to endure

Cattle prices continue to rise week after week. But producers are beginning to wonder, how high can prices go? Here’s what the industry experts have to say.

Livestock prices continue to rise, smashing records week after week. Picture: Zoe Phillips.

CATTLE price records continue to be broken as producers and agents scratch their heads at the ongoing heat in the young cattle market.

The EYCI hit 882.25c/kg this week, up more than 300c/kg on the 579c/kg this time last year.

Last week the EYCI broke a new record when it reached 887.25c/kg.

Australian Bureau of Agricultural and Resource Economics senior economist Andrew Cameron said weather and the national effort to rebuild stock numbers were driving the indicator price.

“The export environment is not that strong,” Mr Cameron said.

“Processor prices haven’t gone up nearly as much, which tells you in the meat market, things aren’t as in demand. Those prices are usually linked up, but they’re deviating. That deviation is big, historically.”

Mr Cameron said the gap between young cattle prices and finished cattle prices would eventually narrow, but it was “a bit of a guess” as to when that would happen.

“When you see the input of young cattle deviating from the output of finished cattle, it does raise eyebrows.”

At the Leongatha store sale last week, vendors and agents were stunned by the strength of the cattle market, with no sign of prices softening.

Nutrien Leongatha livestock agent Eddie Hams said prices had remained strong in recent weeks, having “been taken to another level”, with lightweight cattle in strong demand.

Steers at the sale weighing 300-400kg made from 466c/kg up to 567c/kg.

Keeping pace with the steers, heifers in the same weight bracket, 303-387kg, made from 450c/kg up to 500c/kg.

Meat and Livestock Australia market analyst Stuart Bull said cattle prices continued to be influenced by the move to build herd numbers after drought.

“There is a higher retention of cattle, and an emphasis on females as well, with female prices coming more in line with steer prices,” Mr Bull said.

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