EYCI: 2021 cattle prices at highest-ever levels

2021 was unbelievable for cattle, but experts are saying it’s not sustainable — and there’s one key time that could predict 2022 prices.

Young cattle prices have finished the year on a high, reflecting what was an unprecedented year.

The benchmark Eastern Young Cattle Indicator has risen almost 45 per cent in 12-months, to close the year at its highest ever level of 1169.22c/kg carcass weight.

The price is 74c/kg higher than a month ago, 21c/kg higher than last week and 356c/kg higher than where it finished last December.

According to a Meat and Livestock Australia spokesman throughout the year, restocker demand moved from NSW to Queensland and restockers in Dalby and Roma have been driving the EYCI up in recent weeks.

Thomas Elder Markets analyst Matt Dalgleish said the record finish for the EYCI was “reflective of a year that kept outdoing everyone’s expectations”.

Mr Dalgleish said while there was a slight increase in numbers being sold in the lead up to Christmas, numbers were still “relatively tight” so the latest price high was a result of “short term supply issues and the exceptional season”.

“The price is at levels that are unsustainable long term. There’s a general rule that how the cattle market goes in January, is how it will play out all year, so it’ll be interesting to see how that plays out.”

Meanwhile the national trade lamb indicator also finished the year on a positive, at 846c/kg carcass weight — slightly lower than last month but 49c/kg higher than the same time last year.

The heavy lamb indicator closed at 871c/kg, 76c/kg higher than the same time last year, while restocker lambs finished at 977c/kg, 24c/kg higher than a year ago.

Looking ahead, the MLA spokesman said there will be more lambs hitting the market next year that have been finished on stubbles as the spring flush of lambs in NSW and Victoria was later than average.

“Between November 2021 and March 2022, there are expected to be 2.9 million more sales than the corresponding period 12 months ago,” he said.

Mr Dalgleish said generally speaking all of the fundamentals for red meat were good, however on the whole longer term prospects for sheep meat were stronger due to global competitiveness.