NSW restockers confident – but for how long?

The restocker yearling steer indicators across the eastern states have headed on different trajectories since the beginning of May, with NSW lifting, Victoria stabilising, and Queensland softening.

The pattern largely follows rainfall distribution throughout April, and pasture conditions in the early stages of May. Indeed, the numerous market disruptions during April from the public holidays are likely to have also influenced the flow-over offerings in the first week of May, and thus the overall market’s performance.   

Nevertheless, at the close of Monday’s markets, the restocker yearling steer indicator for:

• NSW was 395¢/kg lwt, up 5% from the beginning of May
• Victoria was 363¢/kg lwt, steady
• Queensland was 372¢/kg lwt, down 1%

At the same time, the feeder yearling steer indicators across the three states have all declined, yet to varying degrees:

• NSW was 347¢/kg lwt, down 4% from the beginning of May
• Victoria was 350¢/kg lwt, down 3%
• Queensland was 333¢/kg lwt, down 1%

Considering numbers offered across all states are likely to continue increasing as the mercury drops throughout May and June, and all other comparative indicators are trending in the opposing direction, the likelihood of the NSW restocker yearling steer indictor continuing to surge ahead of the pack is minimal. In fact, across all states the usual seasonal decline in prices is expected across all categories.

While a softening is anticipated, it should be noted that all of the aforementioned indicators were 295-315¢/kg lwt at the same time last year, and between 253-273¢/kg lwt in 2015 – thus indicating the realms the market remains.

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