Buyer demand surges despite external market conditions
20 January 2022
Key points:
- Dalby and Roma yardings rose by 185% and 141% respectively on the back of an improving market
- Restockers and feeder buyers are not deterred by the external market conditions, taking home 93.5% of the total yarding
- After a slow first week which was expected, supply has done little to deter restocker and lot feeder demand and competition to secure stock.
Supply
Supply of EYCI eligible cattle has risen significantly, with EYCI yardings up by 48% or 4,392 head from 2021.
After a sluggish start last week, yarding volumes have rebounded strongly by 101% or 6,785 head, which was expected to occur. A slow first week of sales – with tentative sellers looking to test the market before committing to supplying stock – is a common occurrence for the first week of each year.
Dalby’s yarding numbers for EYCI eligible cattle improved by 1,752 head or 185% week-on-week. While the saleyard indicator prices were softer than the overall EYCI buyer averages, the sharp increase in numbers rallied the indicator. Roma’s yarding also improved significantly, rising by 2,189 head or 141% week-on-week following a softer than usual start.
Markets
Lot feeders and restockers flexed their buying power at Roma and Dalby this week, driving the EYCI to gains of 3.1% or 36c to reach a new record of 1,187c/kg cwt. Interestingly, on 19 January 2021 – almost one year ago to the day – the EYCI rose 23.25c to reach 868c/kg cwt. Those gains mirroring the performance of the indicator show the current strength of the restocker and lot feeder demand, even with prices 36% or 315c/kg cwt higher than they were the same time 12 months ago.
Restockers at Roma paid a 229c premium to feeder buyers, with the supply of restocker cattle stronger by 716 head for the Roma yarding. The large yarding of restocker cattle did not impact demand, reinforcing the strong restocker sentiment in parts of Queensland cattle country despite external market movements outside the producer’s control.
Meanwhile, feeder buyers increased the numbers they purchased, taking home an extra 2,530 head week on week. Both improvements demonstrate the current external market conditions are not deterring the lot feeders and restockers from competing and purchasing heavily.
Continuing to aid the buoyant market is the performance of the lot feeders, with the indicators’ price lifting 27c overnight across all saleyards. Roma’s offering of 1,418 head received a 73c or 7% premium to the overall indicator price of 1,094c/kg cwt.
