Weekly cattle and sheep market wrap
04 November 2021
Key points:
- The WYCI reached 1,187c/kg last week, nearing the 1,200c/kg mark
- The EYCI hit a new record of 1,075c/kg last week, but fell back to 1,063c/kg this week
- Despite lamb prices falling in recent weeks, they still remain above 12 months ago
WYCI surges
The Western Young Cattle Indicator (WYCI) surged on the back of higher vealer steer yardings in the state, reaching a new all-time record of 1,187c/kg last week. An influx of vealer steers pushed the WYCI higher – since 20 October the number of vealer steers counted in the WYCI has increased from 117 head to 513 head.
With 500% more vealer steers traded in WA in the last fortnight, prises jumped with increased competition. This increase was aided by the fact that vealer steers in WA are currently averaging 1,296c/kg, a premium of over 140c/kg on vealer heifers and 185c/kg on yearling steers.
Feeders remained the main buyers of these vealer steers, hoping to acquire light cattle to add weight to. Historically, WA feedlot numbers surge in the summer months.
EYCI eases slightly
The Eastern Young Cattle Indicator (EYCI) also reached a new record last week on 26 October, hitting 1,075c/kg. The rise was largely attributed to Roma, which accounted for nearly 25% of all eastern young cattle sales, with that particular saleyard outperforming the indicator by 20c/kg on average.
This week, higher yardings have put downward pressure on prices, with the EYCI dipping 12c/kg to 1,063c/kg. Restockers, who are paying a 146c/kg premium to lot feeders, have been buying less cattle this week, causing the market to soften.
Lamb prices soften
The National Trade Lamb Indicator (NTLI) has fallen 54c/kg, or 6%, this week – back to 827c/kg. Trade lamb prices have fallen despite reduced yardings. Despite this, the NTLI remains 39c/kg, or 5%, above the same time in 2020.
The reduced yardings and falling prices are consistent across trade, heavy, Merino and light lamb prices. However, restocker lambs have fallen by less (under 1%), even increasing at the start of this week.
Mutton prices fall
This week, mutton prices fell below the same time in 2020 on the back of larger yardings. The increased yarding is being driven by farmers discarding ewes post weaning and a large increase in weathers being offered by WA producers post shearing into the live export trade.
