Cattle Sales Indicators Soften Due to Public Holiday Disruptions

Higher Processor Demand Pushes Up Lamb Prices 

The Eastern Young Cattle Indicator (EYCI) softened 14c week-on-week to 1,072.49c/kg cwt, following a 61 per cent reduction from last week in the number of head reporting due to Good Friday and Easter Monday, which limited saleyard throughput, according to Meat & Livestock Australia’s (MLA) Weekly Sheep and Cattle Market Wrap released on April 21.

The Western Young Cattle Indicator (WYCI) did not have any head reported this week as the Muchea cattle sale on Monday did not go ahead and the Mt Barker sale took place on Thursday, MLA notes.

The industry research and marketing body reports medium cow prices are continuing to soften, reaching their lowest point since July last year at 299.1c/kg lwt. This is a drop of 27c week-on-week – however, prices are still higher year-on-year by 22¢, it points out.

Similar to the EYCI, yardings have softened by more than 50 per cent week-on-week and could be impacting the accuracy of the indicator, MLA adds.

Meanwhile, it notes feeder steer prices have also softened week-on-week by 13c. A 31c and 42c premium on the national average occurred in Dalby and Roma respectively.

“These saleyards are in the top-three saleyards for contribution, with Dalby contributing 21 per cent and Roma contributing 19 per cent. The higher-than-average contribution from these saleyards is, again, due to many cattle sales not going ahead with the shorter trading week,” MLA says.

Sheep

MLA reports that light lamb prices have strengthened 44c week-on-week, but yardings have softened 3,270 head. Forbes contributed the highest percentage at 46 per cent, with a premium of 17c on the national average.

Trade lamb prices have bounced back to 799c/kg cwt after hitting a low of 765.8c/kg cwt two weeks ago, according to the industry body, with higher demand from processors pushing up the price of these lambs. A 10 per cent increase in sales were recorded in this market as they compete for the seasonally lower supply, it notes.

Slaughter

Goat slaughter strengthened 112 per cent week-on-week from 27,576 to 33,528 head; while slaughter volumes for cattle, sheep and lambs softened, as is seasonally expected with the Easter holidays shutting down processors, MLA says.

“However, slaughter numbers are still stronger year-on-year, with cattle slaughter nearly 20,000 head higher than this time last year and lamb slaughter 90,419 head higher year-on-year,” it adds.

Saleyard Update

Sales that did not go ahead due to Easter Monday included: Mortlake, Dubbo, Toowoomba, Forbes (cattle), Pakenham, Wagga Wagga (cattle), Tamworth, Bendigo, Muchea (cattle), Corowa, Ballarat (cattle). Swan Hill Market sales also failed to proceed. The Monday sales will also not go-ahead next week due to ANZAC day, MLA points out.

Click on the highlighted links for MLA’s more comprehensive analysis of the outlook for the cattle market and sheep and lamb market; and the highlighted links for ABARES’ latest forecast for the cattle market and sheep and lamb market.