Restockers drive EYCI record higher

The Eastern Young Cattle Indicator (EYCI) record climbed higher again this week on the back of strong restocker intent. On Wednesday 26 August, the indicator was reported at 788.25¢/kg carcase weight (cwt), 286¢ above year-ago levels.

In the west, young cattle prices have also found support on the back of strong restocker and feeder demand. On Wednesday 26 August, the Western Young Cattle Indicator (WYCI) was reported at 751.50¢/kg carcase weight (cwt), 203¢ above year-ago levels. However, the EYCI maintains a 36¢ premium to its western counterpart, driven by a low supply of young cattle and the impact of good rainfall across New South Wales and Victoria.

For the week ending 26 August, throughput for the EYCI declined by 27% compared to the same time last year, to 12,196 head. In comparison, WYCI throughput declined by 74% to 302 head, indicating tightening supply at a national level. For the same week, 53% of EYCI eligible cattle were sold to restockers, followed by feeders at 34%, with processors accounting for 13%. 71% of WYCI eligible cattle were sold to feeders, followed by 28% to restockers, with processors only accounting for 1%.

The EYCI price breakdown shows restockers paying an 85¢ premium to feeders and a 107¢ premium to processors, which is in contrast to the same time last year, when the EYCI had feeder buyers paying a 12¢ and 56¢ premium over processors and restockers respectively. The breakdown in the west shows restockers are paying a 28¢ and 107¢ premium to feeders and processors respectively.

For the seven days ending 26 August, EYCI eligible cattle comprised of 90% yearlings, with the 200–330kg weight category accounting for the greatest price increases since the middle of August. Strong southern restocker demand has seen light cattle head interstate from both Queensland and Western Australia, supporting the overall strength in the store market.

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