Cattle prices: EYCI hits another new record of 960c/kg
Farmers have already been astounded by the meteoric rises in cattle prices. Now there’s been yet another increase.
THE benchmark Eastern Young Cattle Indicator has continued to climb, today toppling another record.
Last week experts and producers were astounded when the indicator price entered 950c/kg-territory.
Today, it has broken a new threshold, hitting 960c/kg.
This rise represents a 15.40c/kg increase in a week, and a 48c/kg rise in a month.
And, it is more than 200c/kg where it was this time last year — which was regarded at that time as a lofty high.
Last week the EYCI hit a new record — 951c/kg — and then a leading analyst said that price could be as good as it gets.
Matthew Dalgleish from Thomas Elder Markets said last week the prices were “likely” to be the highest cattle producers would ever see.
“I would not be surprised if what we are seeing right now is it,” Mr Dalgleish said last week.
“You never know when it is going to hit the peak, but if I was still working in currency trading I would be selling it all here.”
This comes after a rally that started in earnest in January last year when the EYCI was around 500c/kg.
It is staggering to think that in March 2019, not that long ago, the benchmark price was around 380c/kg carcass weight.
Mr Dalgleish said a key indication that the peak may have arrived was the change in the pattern of price movement.
“There has been less intensity in price movements,” he said.
This indicated the underlying strength of the market was weakening.
Heavy steer price trends were beginning to see an erosion in the ability of traders to make a margin.
“Farmers aren’t idiots. And, producers trading stock would start pulling back from outlaying big money when there was uncertainty over the returns they’d make on sale day,” Mr Dalgleish said.
“They aren’t idiots,” he said. “There is a lot of grass and good seasons but at the end of the day, they might be keen to restock but they aren’t idiots.”
However, while prices were likely to begin to ease, Mr Dalgleish isn’t calling a market crash.
He tipped prices could remain in the 900c/kg range for young stock throughout the remainder of the year.
MORE
TOP 10 RECORD BREAKING PRICES FOR CATTLE AND SHEEP
Dorpers average almost $5000, White Suffolks break records
A lack of labour is one of the reasons behind sky rocketing demand for Dorpers in country south of Broken Hill. See the top ram sale results for the past week.
Red meat targets falling short
Almost half of Australians are not convinced livestock producers raise cattle and sheep in a humane way, a survey by MLA shows.