May 2023 cattle prices: EYCI prices drop lower again

Day after day of falling cattle prices are hitting producers where it hurts. Is there an end in sight to the diving values?

Cattle prices appear to be in free fall as the market is stripped of value daily.

The benchmark Eastern Young Cattle Indicator has lost 30c/kg in the past week, 83c/kg in the past month and is tracking 481c/kg or 44 per cent lower than it was this time a year ago.

Cattle were up to 50c/kg cheaper at the major regional centre of Wagga Wagga, NSW, on Monday despite a smaller offering.

It was on top of big losses last week, with 600 kilogram-plus bullocks losing 82c/kg in the past two sales, or hundreds of dollars in value.

And while markets early this week were smaller as producers reacted to substantial price falls, yardings to date this year are blamed for some of the price fall.

Meat and Livestock Australia market information analyst Jenny Lim said last week’s saleyard offerings were back 20 per cent but were still 147 per cent higher for the year.

“Supply from the extensive herd rebuild is reaching the market and is not expected to slow anytime,” Ms Lim said.

“Weight, quality and finish continue to drive the market.”

Prices were softer than producers would like at the Leongatha Store Sale held last week. Picture: Yuri Kouzmin

Ms Lim said cattle slaughter had ramped up to more normal levels after a series of broken weeks due to public holidays in April, and last week’s kill was 19 per cent above year-ago levels.

Victorian Farmers Federation livestock group president Scott Young said a cold wet spring meant some stock had not been able to be finished as quickly, and now many of these were making their way to market.

“I think we are seeing the effects of a delayed turn-off, not only in the cattle market but the sheep market too,” Mr Young said.

Cattle producer Mikayla Killeen from Glengarry sold steers at the Leongatha store sale last week for $1400 with the 397-kilogram cattle returning 353c/kg and described the cattle market as “lower than we would all like it to be”.

“We had hoped that once all the public holidays were over and we got past ANZAC Day that the market might lift a bit once the processors were back in full production again,” Ms Killeen said.

“But it seems everyone is nervous about the weather and it could be that we may see prices drop further before they start to go up again.”

The impact of falling prime values will test the strength of the store market this week with almost 9000 cattle booked to be sold at Mortlake and Ballarat.