11/18/2021 | News release | Distributed by Public on 11/17/2021 18:11
18 November 2021
Key points:
With rain events throughout key supply regions in Queensland over the past week, restocker buyers have flexed their muscles. On Wednesday, the Eastern Young Cattle Indicator (EYCI) yarded 13,731 head - a fall of 14% compared to the same day 12 months ago. In monetary terms, comparing 12 months ago to the indicator's current price, the EYCI currently sits 25% higher, amounting to 273c/kg cwt.
Put into perspective, since the first week of January 2020, when drought and fires were raging across the eastern seaboard, the indicator has risen meteorically by 616c/kg cwt, or 56%.
With supply tight in comparison to 12 months ago across the entire EYCI yarding and rain falling in Queensland, which has not had as favourable a season as NSW, restocker buyers in this state have been provided with an excellent grass-driven opportunity to purchase cattle.
On Tuesday at Roma, buyers purchased restocker cattle for 1,276c compared to the entire EYCI restocker average of 1,218c/kg cwt. This 5%, or 58c/kg cwt, premium demonstrates the critical demand for restocker cattle from this key Queensland market.
On Wednesday at Dalby, restockers again proved the difference, lifting the saleyards average price by 39c/kg cwt week-on-week. That rise was on the back of a 62%, or 1,916 head, increase in Dalby's EYCI-eligible cattle, demonstrating that in current market terms, increased supply is not impacting buyer demand and having no major effect on price. Feeder buyers also operated strongly, purchasing 55% of the saleyard's young cattle offering.
Across the eastern seaboard, restockers are paying a 176c/kg cwt premium to feeders, demonstrating the massive confidence boost delivered by rain in the past week.
Looking ahead
The Bureau of Meteorology is forecasting an above-average start to 2022, with a strong summer expected for most cattle regions. The continuation of above-average seasonal conditions and rain events can be expected to remain a motivator and dictate terms of the young cattle market into the new year.