July 25, 2011

Australian young cattle market upbeat

Australia's benchmark Eastern Young Cattle Indicator (EYCI) made a slight gain of 2% since mid-June, settling at AUD3.80 (US$4.11)/kg cwt on Thursday (Jul 21), and remaining 6% higher on-year.

Even though overall cattle throughput has decreased recently, the volume of cattle incorporated in the EYCI has not dropped, rising 13% compared with the same week in 2010 with 14,040 head included in the indicator.

Driving this trend has been the improvement in seasonal conditions for much of 2011, which has translated into better quality cattle, with more weight and condition.

Restockers purchased 39% of all C2 and C3 yearling and vealer cattle offered in EYCI reported markets over the past week, about 7% higher compared with the same week last year, despite mixed price signals and slow fodder growth during the cold months.

Prime cattle drafts have characteristically tightened due to the winter conditions, which has in turn increased competition between processors.

Young cattle destined for slaughter averaged AUD2.01 (US$2.18)/kg lwt or AUD3.75 (US$4.06)/kg cwt, 7% higher on-year.

Feeder operators secured 29% of the EYCI yarding.