Weekly sheep and cattle market wrap

Indicators

The Eastern Young Cattle Indicator (EYCI) hit 1,128.83¢/kg cwt this week on the back of stronger yardings in Roma. Yardings were up nearly 3,000 head week-on-week with mostly good quality local cattle, causing the EYCI reporting head to jump above 12,000. A premium of 38¢ on the national average has pushed the indicator up.

Restocker yearling steers in Roma fetched a 66¢ premium on the national average and contributed 28%. The highest contributor, at 33%, was Dalby, which traded at 11¢ under the national average. Larger yardings in Dalby for the yearling steers and better quality in the category saw the prices lift by 7¢ within the saleyard but were still at a discount when compared to the southern states, where restocker sentiment has been strong.

Medium steer prices have softened week-on-week by 36¢, continuing the volatility experienced in the indicator for the last three months. Many of these sales are going towards feeders, at 83% of the total sales. Higher grain prices and difficulties around supply is putting pressure on the feedlot sector and so reducing demand for these cattle. Muchea, in the west, had the highest premium at 546¢/kg lwt but Charters Towers, which had a 39% contribution, was trading 19¢ under the national average, creating the softening in the indicator.

The Western Young Cattle Indicator (WYCI) has bounced back 19¢ week-on-week after yardings softened by 106 head in Muchea and in Mount Barker by 170 head. Feeder demand has eased from two weeks ago.

Sheep

Lamb prices have been increasing with stronger demand from processors for heavy and trade lambs. Heavy lambs have strengthened 44¢ week-on-week, with 92% of sales going to processors. Yardings have softened by 4,000 head but still remain strong at 48,381 head this week. Southern saleyards were fetching premiums on the national average with the three highest prices found in Horsham, Wagga and Forbes. These saleyards took 45% of the contribution between them.

Wagga Wagga yardings remained strong at 41,050 head. Recent wet weather has improved buyer sentiment and the quality across the saleyard. High competition for trade lambs from domestic processors improved prices week-on-week. There was also strong demand for Merino lambs with more buyers on the rail. The national average price for trade lambs strengthened 38¢ week-on-week, with Wagga Wagga taking out the top price again at 965¢/kg cwt. A greater presence of buyers from Victoria were competing with the local NSW processor buyers as restocker sales reduced by 9% from the beginning of May.

Restocker sentiment seems to have eased nationally as the indicator softens by 57¢ week-on-week. Yardings have fallen below 10,000 head this week as key contributors see a reduced yarding – such as Ballarat, which had a 6,000 head drop in yardings this week. Even though supply has eased, there is still strong prices to be found in the south. Ballarat has a 71¢ premium on the national average.

Producers are wary of the supply chain issues continuing, with processors booked out months in advance.

Slaughter

Slaughter rates have improved this week for cattle, goats, and sheep.

Goats improved 56% week-on-week as new processors come online. This has increased the slaughter rate to above 2021 levels, with goat slaughter up 72% year-on-year.

Cattle slaughter has improved by 9,625 head week-on-week to hit the same levels as this time last year. However, slaughter rates remain under 2020 numbers.

Meanwhile, sheep numbers have improved, remaining above levels seen last year and moving against the seasonal dip normally seen during this period. At the same time, lamb slaughter has softened 19,000 head.

Sales update

The Armidale sale did not go ahead this week.