Herd rebuilds spur difference in eastern states’ demand
29 September 2022
Key points:
- Queensland’s restocker to feeder premium hits its highest levels since reaching a record in early January.
- Restocker buyer demand has been bolstered by favourable spring growing conditions, driving improved weight gain performance.
- Current price performance reveals the differences in buyer demand and herd rebuilds underway in NSW and QLD.
A strong start to spring has delivered ideal grazing conditions for weight gains, causing a strong resurgence in the eastern seaboard’s cattle market prices and buyer demand.
Across each of the eastern states, distinct trends are emerging which indicate the maturity of their respective rebuilds.
Spring spurs on Queensland restockers
At a broader level, restocker demand is currently outstripping overall market performance, with Queensland buyers indicating a distinct restocking interest across all markets as spring improves.
The premium for restocker to feedlot cattle in Queensland is currently sitting at 24% – the highest this has been since early January, when the cattle market reached records. With premiums between restocker and feeder buyers widening and the overall market improving to a lesser extent, the influence of spring and resulting grass growth is driving buyer demand for cattle to fill paddocks.
The prices for yearling heifers are a clear indication of this strength in buyer demand in Queensland. Yearling heifers weighing between 200–280kg that were purchased this week by restockers are worth an average of $1,410/head in Queensland. This is 58% or $520/head above the five-year average and comes even as supply sits 46% above the five-year average.
Clearly, higher supply has not impacted buyer demand, with heifer prices improving in recent weeks as spring develops. As Queensland’s herd rebuild continues to mature, buying heifers for an autumn joining is evidently front of mind for Queensland producers. Favourable grazing conditions are also supporting positive development for females to ensure they are in optimum condition for joining.
NSW feeder buyers drive difference
Currently, NSW’s young cattle market is operating distinctly differently to that of Queensland’s, with NSW feeder buyers purchasing more cattle and the NSW restocker to feeder premium significantly tighter than that of Queensland’s.
At the time of writing, the restocker to feeder premium in NSW was 12%, or half of the Queensland equivalent – demonstrating the robust competition feeder buyers are presenting at the saleyards.
As referenced previously, NSW feedlot demand for cattle is currently strong with lower utilisation rates driving increased demand to fill pen space.
EYCI prices
The difference in Eastern Young Cattle Indicator (EYCI) prices between Queensland and NSW shows the difference in the herd rebuilds currently underway in each state.
At present, the NSW EYCI price is firm on year-ago levels at 1,062¢ while in Queensland, the EYCI price is 1,128¢/kg cwt – 132¢ or 13% higher than 12 months ago.
This price difference demonstrates the significant demand Queensland buyers have for restocker cattle to ensure they’re capitalising on strong growing conditions to rebuild herd numbers. The QLD restocker heifer price also demonstrates this.
