Young cattle prices: EYCI down after record

Rain and flooding is hindering cattle getting to market. While prices are holding, how long will the EYCI stay above 1100c/kg?

Young cattle prices are sticking around the 1100c/kg mark, but have fallen slightly this week.

And while prices have taken a small dip, they are still at record highs.

The benchmark Eastern Young Cattle Indicator closed at 1106.3c/kg carcass weight yesterday — a fall of 5.2c/kg on last week, but 316c/kg higher than the same time last year.

Supply getting even tighter due to rain and flooding hindering cattle getting to market is the catalyst for the price holding around the 1100c/kg level.

It comes after the EYCI reached yet another record of 1111c/kg carcass weight last week, up 16c/kg for the week and a startling 305c/kg higher than the same time last year.

Throughput at east coast saleyards is down about 30 per cent on the average trend for this time of the year, while the latest national weekly slaughter is tracking about 12,000 head below last year’s levels.

Thomas Elder Markets analyst Matt Dalgleish said the rise in all cattle categories in the past few weeks was more due to issues with “short-term supply” because of flooding and rain.

Mr Dalgleish said while the Queensland and NSW saleyard throughput numbers have dropped off in recent weeks, there wasn’t a corresponding lift in over-the-hooks numbers, suggesting producers are happy to keep stock on-farm.

At both Wodonga and Yea store cattle sales last week, the first large numbers of autumn-drop weaners were sold, with prices described more than once as “phenomenal”.

Most of the weaners sold from 700c/kg to 850c/kg.

After Wodonga last week commission buyer Geoff Braun said prices had “stepped up again”.

“It is colossal money really. But it is raining and there is a lot of feed about,” he said.

“It looks like good calves are going to make a lot of money, although some (traders) might not be interested if the market stays (at such high price levels),” Mr Braun said.

“You’ve potentially got to outlay a lot to possibly get a small margin, it is a big risk at this level.”

Ken Star, manager Bungil Park Herefords for the Zauner family, with Chris Zauner, and weaner steers which made to 802c/kg at Wodonga recently.

Rabobank senior animal proteins analyst Angus Gidley-Baird said, in the bank’s beef quarterly report, forecasts for favourable seasonal conditions in the coming months would support strength in producer demand and provide support for young cattle prices.

“However, with the US, South Korea and Japanese import prices not showing the same

increase through September and October as we saw in earlier months, finished cattle

prices may see a cap on further increases,” Mr Gidley-Baird said.