EYCI prices: Toowoomba, Casino cattle sales closures won’t hurt cattle demand

The EYCI has dipped after sales in Toowoomba and Casino were cancelled, but restocker demand means producers shouldn’t worry.

The cattle industry’s benchmark indicator is expected to bounce around over the next few weeks as floods impact on yardings and logistics.

But it is more a matter of the information that feeds into its calculation rather than an overall cheaper price trend.

The Eastern Young Cattle Indicator closed at 1111c/kg on Monday, a slight fall of 3c/kg from the 1114.75c/kg mark set late last week.

The EYCI is expected to move around due to the impacts of the recent floods on yardings. Picture: Zoe Phillips

Meat and Livestock Australia market information manager Stephen Bignell said flooding had affected properties, processors and saleyards but restocker demand in central and western Queensland remained strong.

“Road closures have impacted producers’ ability to send cattle to saleyards or processors, and it has also impacted summer crop production in some flood affected areas,” Mr Bignell said.

Two major centres — Toowoomba and Casino — were forced to cancel their markets last week while the Dalby, Queensland, market was depleted with 68 per cent fewer cattle than the week before.

A recent one-day fall of 18c/kg in the EYCI was put down to the cancellation and smaller sales last week, especially the cancellation of the Casino sale.

“Casino is the saleyard recording the highest young cattle prices (1316c/kg) which is a 185c/kg premium to the EYCI, so the removal of Casino from the EYCI is behind its fall.”

Nutrien livestock development manager Ron Rutledge said producers would not be worried about movements in the EYCI.

“It is an interesting figure to follow but when it comes down to it, the bloke with 1000 cows won’t be too worried if the EYCI goes up or down from week to week,” Mr Rutledge said.

“The EYCI contains a broad amount of information, so you have to question its relevance.

“In January, for example, the EYCI went down but it did not take into consideration of all the public holidays during that time that affect processors.

“Things like floods and Covid-19 and public holidays all affect the EYCI.”

Mr Rutledge said he did not expect the floods in the north to greatly impact on prices in southern markets, and northern processors would also draw on feedlot cattle to fill kill capacity after short-term disruptions due to flood waters.