Weekly sheep and cattle market wrap
31 March 2022
Key points:
- Yardings are down in Roma and Dalby in light of recent weather events.
- The Western Young Cattle Indicator (WYCI) is at its highest since November last year, operating at a premium to the Eastern Young Cattle Indicator (EYCI).
- Premium prices for trade lambs and mutton were seen in Forbes once again.
- Lamb and mutton slaughter have strengthened.
Indicators
The Eastern Young Cattle Indicator (EYCI) has softened 18.34c from Friday last week, with nearly 7,000 less head reporting to 1,090c/kg – down 8% since the highs of early January. This could be an indication of easing restocker demand and is the lowest the EYCI has been since November last year, when it was operating at 1,099.9c/kg cwt. Feeders now make up 60% of buyers for EYCI-eligible cattle.
Yardings in the east have been down this week due to recent weather events making it difficult to transport cattle to these sale yards. Roma numbers were down by 2,304 head week-on-week, contributing to the lower reporting in the EYCI. Young cattle prices in Roma have dropped by 40c in the last two weeks.
Feeder steers in Wagga Wagga are trading at a premium to the national average by 33c/kg cwt with the largest throughput, contributing 17%. Heavy steer prices have softened significantly week-on-week, dropping by 31c/kg cwt to reflect the near doubling in throughput this week.
The Western Young Cattle Indicator (WYCI) is at its highest since November last year, now operating at 1,172.30c/kg cwt. The WYCI is at a significant premium to the EYCI in the east, with restockers making up 47% of all young cattle purchases. The WYCI was made up of vealer heifers and vealer steers, with the premium price reflecting the high demand for heifers in the west and consequently, the long-term confidence in the industry in WA.
Sheep
Trade lamb prices have bounced back slightly since last week with a larger yarding. Forbes increased by 1,154 head with premium prices 57c/kg cwt over the national average. Heavy lamb prices have increased week-on-week by 9c/kg cwt, with premium prices being found again in Forbes, which recorded prices 9% higher than the national average.
Increased yardings of restocker lambs were also seen this week, with yardings up near 5,000 head. Although supply is strong, prices are down year-on-year by 70c/kg cwt and 35c\kg cwt week-on-week.
Slaughter
Goats are increasingly hitting export markets. Slaughter numbers have been softening the last few weeks from the record highs witnessed at the beginning of March, but this increase in supply is being felt strongly in the export market.
Meanwhile, lamb slaughter is up 5% week-on-week to 371,311 head. Mutton slaughter is seasonally higher this week at 105,560 head – a 14% increase year-on-year.
Slaughter for cattle has increased week-on-week to 98,667 head, closing in on the 100,000 head mark after a disruptive start to the year due to disruptions caused by COVID-19 and flooding.
