Young cattle prices: EYCI sets new record

Experts have been predicting for most of the year the EYCI has hit its peak, but it has broken yet another record.

Gerard and Peter Ryan from Ryan Pastoral at Hawkesdale sold 264 steers and heifers at Mortlake last week for a top of $2372 or 721c/kg, which was $500 dearer than last year. Picture: Zoe Phillips

The young cattle price rise just won’t stop.

After smashing through the unprecedented 1100c/kg mark last week, the benchmark Eastern Young Cattle Indicator has posted another record to close at 1105.47c/kg carcass weight on Tuesday.

That’s 25c/kg higher than last week and 280c/kg higher than the same time last year.

Meat and Livestock Australia market information manager Stephen Bignell said restocker demand from Queensland and northern NSW was driving the already huge prices up.

On Monday Roma, Queensland, saleyard was paying the biggest premium for EYCI eligible cattle at 1229c/kg, while Wagga Wagga was the next highest at 1206c/kg.

“The feeder steer price also hit another record (547c/kg) last week, and restockers get rain and see the feeder steer price is up, so can see there is still a margin to be made,” Mr Bignell said.

Mr Bignell said processors were “struggling” in the EYCI market, purchasing just 6.5 per cent of the available cattle on Monday and as a result were buying about 84 per cent of the eligible medium cows.

“The (big EYCI prices) are putting upward pressure on other categories of cattle,” he said.

There was a big crowd at Mortlake store sale last week as restockers buy up. Picture: Zoe Phillips

Thomas Elder Markets analyst Matt Dalgleish said the EYCI was now at levels that aren’t sustainable.

“I think the move higher in the last week or so is more to do with short-term lower supply, due to rain and flooding in Queensland and NSW making getting stock to markets difficult,” he said.

“While the heavy steer prices is back up around 460c/kg liveweight, it does allow upside for young cattle.

“I think this is also a bit of a grass-fever scenario and an incredible amount of optimism from producers.”

Mr Dalgleish said with the rain and good season it wasn’t that “surprising" restockers were continuing to pay big money, but the global pricing was becoming “incredibly high”.

“I can see why restockers are aggressively chasing stock, but it’s the (price) of finished steers that is surprising me the most. We know processors are hurting (in terms of margin), but they are still paying the money.”