EYCI hits new rain induced high

Rain, and the prospect of more in coming days, drove the Eastern Young Cattle Indicator (EYCI) to a record high this week, settling at 619.25¢/kg cwt at the close of Thursday’s markets. This represents a 118.50¢/kg cwt lift on 12 months ago and is close to double from where it tracked mid-2013.

Recent rain has encouraged a greater degree of restockers to enter the market and bid up prices. Of the 13,000 young cattle included in the EYCI this week, restockers accounted for 42% of the purchases, up from 33% the week prior. Feeder buyers accounted for 45% of purchases while processors made up the difference.

The surge in demand has been witnessed at saleyards from Roma to Wodonga, but the biggest lift this week was recorded at NSW centres. EYCI eligible cattle at Dubbo were the standout of the week, lifting 25¢/kg cwt to average an impressive 661¢/kg cwt.

While the recent drenching across parts of the eastern states has provided some renewed confidence for restockers, current store cattle prices reflect a greater market force – the prospect of the smallest cattle herd in twenty years and a shortage of breeder females and young cattle.

The EYCI includes young cattle (C2-3 vealers and yearlings above 200kg) from MLA reported saleyards in Queensland, NSW and Victoria. Including just over 13,000 head this week (or 31% of total MLA reported yardings), the indicator is a broad level benchmark of the Australian store cattle market.