Key points:
- This week, the EYCI softened further on the back of Dalby prices and stronger yardings.
- The restocker yearling steer indicator was also softer (60c week-on-week), reaching the lowest price since July 2021.
- Restocker lamb prices strengthened, largely due to tightened supply and pickier buyers.
- Goat slaughter has strengthened week-on-week, reaching 102% higher than 2021 levels.
Cattle
The Eastern Young Cattle Indicator (EYCI) has softened a further 28c week-on-week, falling to below year-ago levels. This is off the back of Dalby sales, which traded at the national average price of 927.16c/kg cwt, easing 33c week-on-week. Dalby saw a strengthening in yardings of 2,277 head, with most sales going to restockers.
The restocker yearling steer indicator was softer 60c week-on-week, reaching the lowest prices since July 2021. Dalby had the largest contribution here but was trading 14c under the national average. Generally, restockers have not been as active, which can be seen in the yearling steer indicator. Yearling steers are usually bought by producers with the intention of putting weight on to sell on to the feedlot and processing sectors. A change in this price could indicate that restockers are becoming less active in the market and are not paying as much for cattle, especially as processors and feeder prices ease along with lowering grid prices.
The Roma market held firm this week with strong demand from buyers. This is impressive considering the supply uptick week-on-week by 266% or 3,363 head. Roma restocker prices increased 14c/kg cwt despite this major uptick in supply – a great show of support for the Royal Flying Doctor Service charity sale. Overall, the EYCI restocker to feeder premium price has widened again, showing that there is still competition and demand in the market in Queensland.
Sheep
Restocker lamb prices have been strengthening. Prices usually rise at this time of year as supply tightens with joining and lambing, as well as buyers being pickier. Interestingly, trade lamb prices are still softening as producers work through further backlogs of supply.
Lamb and sheep slaughter has picked up week-on-week, both remaining above year-on-year levels. Lamb slaughter rates have increased 19% week-on-week to 376,496 head as the continued supply moves through the processors. However, a new wave of COVID-19 could reduce processing capacity in the coming weeks.
Goats
Goat slaughter has been strengthening over the last four weeks and is currently sitting 102% above 2021 levels, highlighting the increasing popularity in managed goat systems.
Sales update
The Cowra sheep and lamb sale was not reported on this week.
CTLX cattle and sheep and Dubbo cattle and sheep were reported remotely with no data collected from Dubbo.
