Over-the-hook cattle indicators strengthen

Tightening availability of slaughter-ready cattle assisted the national over-the-hook (OTH) indicators averaging up to 15% higher year-on-year during May.

For the first three weeks of the month, weekly eastern states cattle slaughter averaged just over 147,800 head – back 16% from the corresponding period the year prior.

The Queensland MSA heavy yearling OTH indicator (300-320kg, A-C muscle) reached 523¢/kg cwt this week, and averaged 512¢/kg cwt for May – up 10% from the same time last year. The light yearling steer OTH indicator (240-260kg, A-C muscle) averaged 480¢ for the month, up 16% year-on-year.

NSW OTH yearling indicators increased to a lesser extent (13% year-on-year) as the drop in cattle availability has been slightly less significant.

Victorian grids remained fairly steady in the last week of the month, following some major categories jumping upwards of 17¢/kg cwt the week prior.

For the last week in May, the OTH grassfed trade steer indicator in:

• Queensland averaged 493¢, up 13¢/kg cwt week-on-week
• NSW averaged 514¢, up 2¢/kg cwt
• Victoria was steady on the previous week, averaging 538¢/kg cwt

In the same week, the MSA OTH grassfed trade steer indicator in:

• Queensland averaged 514¢, up 12¢/kg cwt
• NSW averaged 529¢, up 3¢/kg cwt
• SA held steady, averaging 510¢/kg cwt
• Tasmania was firm, averaging 555¢/kg cwt

The lower A$ and reduction in cattle availability should continue supporting the market over the coming months.  

To view the latest National Cattle Over-the-hook reports, click here

Additionally, to subscribe to any of the respective reports, email marketinfo@mla.com.au