Weekly sheep and cattle market wrap

Indicators

The Eastern Young Cattle Indicator (EYCI) softened by 8c at the end of last week, falling to 1,082.37c/kg cwt to reach its lowest level since mid-November last year. This drop in the indicator is due to reduced restocker demand and an increase in feeder buyer activity.

Meanwhile, the beginning of this week has seen a slight strengthening of the EYCI to 1,095.56c/kg cwt. Overall, the number of head reporting on the EYCI has increased from last week’s decline.

The Western Young Cattle Indicator (WYCI) dropped at the end of last week by 45c and has held steady at 1,127.27c/kg cwt. This is due to the fall in both restocker and feeder prices as premiums between the producer and feedlot sector tighten in the saleyards.

Medium cow prices have softened significantly over the past two weeks, falling by 13% to 338.24c/kg lwt. Feeder steer prices have also softened by 4%, reaching their lowest price at the end of last week since November last year. Medium steer prices have increased 29c/kg lwt week-on-week with strong demand from feedlot buyers.

Wagga Wagga yardings have increased in anticipation of the coming Easter holidays. Feeder steer prices at the saleyards were at a 61c/kg lwt premium on the national average for feeder steers, reflecting the strong demand for feeder cattle in this market and the premium prices being found in the southern region of NSW.

Sheep

Restocker lamb prices have been strengthening over the last couple of weeks, increasing by 3% week-on-week. Overall, lamb prices have been softening, with trade lamb prices dropping by 31c/kg cwt week-on-week to reaching their lowest price in 12 months. However, a 60c/kg lwt premium on the national average was found at Carcoar.

Light lambs were looking much the same with a softening in prices again at 31c/kg cwt week-on-week. The softening in lamb prices across the board is due to reduced demand from processers and the continuation of varied quality that has been seen at saleyards over the last few weeks.

Slaughter

Cattle slaughter has softened slightly week-on-week, dropping from 98,667 head to 96,851 head.

Lamb slaughter has declined nearly 8,000 head week-on-week with a 43% reduction in WA over the last two weeks. This is seasonally lower than the last two years.

SA has also experienced a softening in lamb slaughter by 27%.

Goat slaughter is still falling, dropping by 15% week-on-week.

Sales

The Warwick and Armidale sales did not go ahead this week.

Markets

The Australian dollar has been appreciating against the American dollar sitting at 0.76 USD, an important input for export markets. An appreciating AUD can place upwards pressure on margins for exporters.