Weekly cattle and sheep market wrap

Inflation and transport 

Inflation rose 1.3% in the last quarter of 2021, up 3.5% for the last 12 months.  

Interestingly, transport prices have also risen 12.9% in the last year and the whole supply chain is feeling the effects of this. The average cost of petrol is currently 164c/litre, the highest it has been since at least 2013. 

As a result, these increased transport costs are now being factored into everything from livestock freight rates to the cost of groceries for consumers. Vegetables, takeout meals and beverages were cited as the main driver behind the cost of food increasing 1.9% in the past 12 months, with meat prices not suggested to be a factor in this increase. 

Indicators 

The EYCI fell 4% from the all-time record set last week, now sitting at 1,148c/kg. The fall can be attributed to a smaller yarding in Roma and a drop in the restocker premium being paid by Queensland producers. The average price for EYCI-eligible cattle in Roma fell 160c/kg from over 1,300c/kg to 1,141c/kg.  

Dalby, which contributes 21% of throughput to the EYCI, did not have sales take place on Wednesday due to the public holiday and this is likely to also impact the indicator until next Wednesday. 

Processor reliant indicators such as the medium cow and heavy steer are staying relatively stable around 350c/kg and 445c/kg as we move through the period of uncertainty regarding processor capacity. 

All lamb indicators are softer this week except for restocker lamb prices. Restocker lamb prices are up 55c this week to 958c/kg on the back of far smaller yardings. Meanwhile, the volume of Merino lambs has dropped as prices have fallen in the last week – however, this can be attributed to a smaller percentage of stock offered being classified as young lambs. 

Slaughter 

Cattle slaughter jumped 16% to 72,000 head this week, with lamb slaughter also rising by 4,000 head to 323,000 head – closing the difference between 2021 and 2020 slaughter levels. This increase in slaughter volumes for both species indicates that staffing shortages caused by COVID-19 isolation protocols are now easing. 

Sales shut  

As Wednesday was a public holiday, the following sales did not occur this week:  

• Casino 

• Warrnambool 
• Carcoar (Sheep) 
• Dalby 
• Singleton 
• Cowra 

• Cootamundra (Sheep) 
• Horsham (Sheep) 
• Leongatha 
• Gracemere 
• Guyra 

• Mt Gambier 
• Hamilton 
• Charters Towers 
• Katanning 
• Moss Vale 

• Warwick (Sheep). 

The absence of these sales will have an impact on the indicators this week.