Cattle prices: EYCI hits five-month record above 1000c/kg

Producers selling young cattle now earn 38 per cent more than they would have in January. It’s been a big year for beef.

The words to describe the cattle market this year are “unprecedented” and “phenomenal”.

While there have been a lot of predictions about where prices would end up, one thing is without doubt — it has been a spectacular year to be a beef producer.

While the Eastern Young Cattle Indicator has been the main talking point, all categories of cattle have increased in price this year, including bulls, with most studs posting their biggest ever averages.

The EYCI has increased about 38 per cent in 12 months. It started the year at 830.75c/kg carcass weight and peaked at 1147c/kg last week.

When you compare the current EYCI price to the start of 2020 it has risen 661c/kg, or a massive 136 per cent.

First hitting the once unfathomable 1000c/kg barrier in mid-July, the EYCI has rarely dipped below that level in five months.

AuctionsPlus Market Insights chief economist Tim McRae said when he sold some cattle in November 2020 he thought the peak of the market had been reached and didn’t expect young cattle prices to reach 1100c/kg.

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“It’s a reflection of just how tight numbers got, if producers had cattle they weren’t selling them and if they didn’t have them they couldn’t buy them,” Mr McRae said.

“It just kept getting wetter too and the search for cattle has just got harder.”

Mr McRae said the real difference with this year’s price rally is that it has now gone on for 24 months, which means producers have been able to buy and sell within the same market.

Charolais producer and beef breeder Graeme Cook, of Rangan Charolais at Charleroi, said it had been a “fantastic year” and there was a “phenomenal amount of grass about”.

“Driving around there still doesn’t seem to be a lot of cattle about, I think a lot of people can’t afford to buy,” he said.

“Prices have held up extremely well.”

It’s been a big year for cattle prices and the industry. Picture: Chloe Smith

Global Agritrends analyst Simon Quilty said four years ago he spoke of 2021 being the year prices would reach record levels, due to global beef prices tracking higher.

“It was no easy feat to come out and say that, and I always thought this year for prices would be pretty intense, but never in my mind did I think it would get to these levels,” Mr Quilty said.

“I’m surprised at where we are at, but now we are here, I think during the next three years prices will have a soft landing, supported by strong global meat prices.”

It has also been a year like no other for stud breeders, with averages in excess of $10,000 being the new norm.

In spring 2020 only 15 southern studs achieved averages over $10,000, but in spring this year averages for at least 20 studs sale averaged more than $14,000.

There were also some record-breaking individual sales.

In September Millah Murrah Angus sold Millah Murrah Paratrooper R38 for $280,000 — setting the new national record for the breed in Australia.