Why prime markets are so different for lambs/cattle

While the benchmark EYCI is falling, lamb rates are lifting in a vastly different marketplace for sheep and cattle. Here’s why.

Cattle and sheep producers are facing polar opposites in prime markets with beef rates falling and lamb lifting in the past week.

The benchmark Eastern Young Cattle Indicator fell below 1000c/kg for the second time in a week on Monday, closing at 992c/kg and losing 126c/kg in the past month alone.

The EYCI has now lost nearly all of its stellar rise and sits just 32c/kg above where it was this time last year.

Bendigo Lamb Sale. Picture: Chloe Smith

Analysis by Meat and Livestock Australia of cattle that contribute to the EYCI show restockers still paying above what the trade and feedlots are willing to fork out and are still very active in the market.

Restockers bought 42 per cent of all young cattle on Monday at 1034c/kg, compared to feedlots that paid an average of 968c/kg and processors at 923c/kg.

In contrast, bright spots have emerged in the lamb markets after a rocky few weeks of price falls.

All eastern states sheep and lamb indicators were up in the past week with prices increasing by 19-73c/kg, and in some cases, regaining much of the losses of the past month.

The biggest weekly gain was for the Merino lamb category which closed on Monday at 734c/kg, just 46c/kg lower than the same time last year.

The best rates are still being paid for heavy lambs, with almost 39,000 sold on Monday averaging 794c/kg.

The lift in lamb saleyard prices could partially be due to a decline in offerings, with lamb numbers down 17 per cent and sheep offerings dipping by 43 per cent according to Thomas Elder Markets analyst Matt Dalgleish.

He said last week’s sheep yardings across the east coast totalled about 26,000, numbers not seen since the Easter holiday period.

“Current east coast sheep yarding levels are running 45 per cent under the five-year average for this week in the season,” Mr Dalgleish said.

“Meanwhile, east coast lamb yardings are running 10 per cent under the five-year average for this week in the year at 127,067.”