Conditions have started to dry out across several key livestock regions over the past month following the mild winter, including south-west WA, northern NSW and southern Queensland. This has begun to influence prices, with the impact most evident in restocker categories for both cattle and sheep.

Australian cattle prices rebounded sharply in May after trending lower since mid-March. The shift reflects a classic supply-and-demand pivot: rain improved producer sentiment, cattle yardings tightened, and buyers for restocking, feeding and processing all came back into the market at the same time.

Global cattle prices converge

Cattle prices are tracking well above year-ago levels, with young cattle maintaining a premium to their finished counterparts.

Over-the-hook (OTH) cattle indicators gained momentum this week, following tightened supply resulting from widespread rainfall across many parts of the eastern states.

Recent rainfall on the east coast over the last week ranging from 25mm to 150mm has improved market sentiment, pushing up prices for all cattle indicators. The performance of each state is closely linked to the amount of rainfall over the past two months.

2019 prices for both cattle and sheep have been quite inconsistent, with each of the markets fluctuating week-to-week. Adverse conditions continue to dent market confidence and slaughter remains high.