Key points:
- Tightened supply for cattle markets has driven increased demand this week, with most categories experiencing gains.
- Lamb yardings at Wagga Wagga’s Thursday sale were 65% and 90% higher than the corresponding weeks in 2021 and 2020.
- Weekly goat slaughter is currently operating 47% higher than 2021 year-to-date levels.
Cattle market
A fortnight ago, multiple market drivers were placing downward pressure on the market. This week, similar drivers are having the opposite effect and are causing cattle prices to continue to rally across all reported categories.
Solid rainfall across most regions tightened cattle supply significantly this week, with national yardings falling by 3,358 head or 14% week on week. The largest falls were in NSW and Queensland, where supply tightened by 20% and 16% respectively.
Tighter supply and improving buyer confidence has placed upward pressure on demand, driving restockers in particular to pay for quality stock.
Cattle with better finished quality across most saleyards have demanded strong buyer attention. This demand has supported price rises that have incentivized buyers to pay more –particularly feeder and processor buyers, who need to secure cattle against restockers in a tight supply market.
This week, the Eastern Young Cattle Indicator (EYCI) rose a further 43¢ or 5% week on week to finish at 961¢/kg cwt. Meanwhile, the restocker to feeder premium widened to its highest level since mid-June, when the EYCI was operating above 1,100¢/kg cwt. This demonstrates the return of producer confidence to the marketplace and the willingness of buyers to pay for stock.
Further evidence of robust restocker demand has been the lift in the restocker yearling steer prices. These prices rose 8% or 46¢/kg lwt week-on-week to reach its highest level in over a month.
In Western Australia, robust feedlot demand for medium steers saw medium steer prices of 413¢ in the state – a 10% or 37¢/kg lwt premium to the national price.
Sheep market
Restocker demand was not limited to the cattle markets, with the national restocker lamb price lifting 94¢ or 17% to finish at 654¢/kg cwt. At Wagga Wagga on Thursday, feedlot and restocker buyers collectively drove restocker prices to a 41% or 267¢/kg cwt premium on the national price.
Heavy lamb prices in Victoria are operating at a 5% premium to the national average with strong sale results in Bendigo, Ballarat and Horsham. An increasing contingent of Victorian processor buyers heading north to NSW to secure supply has driven increased buyer competition and therefore higher prices over the week, supporting an overall rise of 43¢/kg cwt for the national price.
Mutton
Robust demand for Australian mutton on the global stage has driven exports higher year-on-year by 9%. This demand has flowed through to a strong increase in mutton prices at the saleyard level this week, with the national mutton price rising 57¢ or 12% to reach 552¢/kg cwt.
This rebound in price is a near vertical increase. To view the indicator’s dashboard for detailed price and supply information, click here.
Goat slaughter
Currently, goat supply is at its strongest in three years, outperforming 2021 levels by 47% or 258,000 head in year-to-date terms. When compared to 2020, volumes are up by 85% or 371,000 head.
These figures demonstrate the significant rebuild in goat herd numbers since the breaking of the drought, as well as an increase in the species being incorporated as an enterprise option in operations throughout western NSW and Queensland.
As a result of this increase in supply, goat exports year-on-year are higher by 31%. Interestingly, emerging markets such as South Korea and Taiwan – as the second and third largest importers respectively – have grown their imports of Australian goatmeat by 40% and 16% respectively.
Meanwhile, the United States has maintained its status as the established market for Australian goatmeat, growing its imports by 28% year-on-year to now account for 60% of total Australian goatmeat exports for 2022.
