Young cattle prices continue to break records

Eastern young cattle prices have broken another record, reaching unprecedented highs.

Upward trend: Cattle prices continue to surge. Picture: Zizi Averill

CATTLE prices continue to surge, with the Eastern Young Cattle Indicator smashing the 760c/kg mark overnight.

The EYCI, which has reached unprecedented highs in recent weeks, hit 762c/kg — a whopping 94 per cent increase on the same time last year.

In March 2019 the young cattle price indicator sat at 391.50c/kg.

The previous record for the EYCI was 725c/kg at the height of post-drought restocking in 2016.

Rabobank senior animal proteins analyst Angus-Gidley said the last time prices in Australia rose as dramatically was in 2003 off the back of restocking.

“If you’ve got cattle to sell it’s great news, if you’re buying into the market and trading … if you’re buying young breeding replacement stock it becomes more questionable, it takes a longer time for your returns to come through,” Mr Gidley-Baird said.

Mr Gidley-Baird said producers could potentially back out of the market if prices continued to lift.

“Hopefully they’re weighing up the grass on the ground, the cost of cattle, the cost of carrying those cattle … a rational producer will get to a point where they’ll think they can’t afford those prices.”