QCMI surpasses 200 points – first time since March 2012
01 September 2014
The Queensland Cattle Market Indicator (QCMI) exceeded 200 points last week for the first time since March 2012, driven by the gradual upward pressure from strong processor purchasing at most Queensland saleyards over the past four months.
The QCMI is an index derived from saleyard data collected at National Livestock Reporting Service (NLRS) reported yards, and includes all indicator categories from trade steers (330-400kg lwt C3) to medium cows (400-520kg lwt D3), as well as lines that fall outside those specifications.
After spending a number of months at subdued levels, the beginning of May marked the start of a rise, with the heavy steer (500-600kg lwt C4) indicator at Queensland reported markets gaining 13%, to finish August at 363¢/kg cwt, trade steers increased 9%, to 352¢/kg cwt, while medium cows jumped 28% over the period, to 313¢/kg cwt – the first time cows have been above 300¢ since March 2012.
While restocker interest at most Queensland markets has been practically devoid, the demand from processors and feedlot buyers appears to be driving buoyancy in the market. With this in mind, once significant restocker demand is added to the equation, which will coincide with a contraction in supplies, it should lead to further market buoyancy. This should ultimately assist the QCMI maintaining a level above 200 points, rather than be prone to volatility.
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