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Yearling heifer prices surge as yardings fall
18 March 2021
Key points:
- Yearling heifer prices surge by 4% for the week to 1,475kg/head on the back of reduced yardings
- Yardings of young heifers fell 12% for the week
- Reduced yardings and high prices demonstrate the value of young heifers and confirm that producers are retaining young females to bolster their herd numbers.
Despite EYCI eligible yearling heifers trading at a 12.25¢/kg carcase weight (cwt) discount to EYCI eligible yearling steers at present, they remain extremely valuable.
As producers look to retain young females in order to rebuild their herd numbers, heifer yardings remain low – down 12% for the week.
The low yardings are translating into increased prices – this week yearling heifer prices rose 4% to $1,475. On a per head basis the weekly jump In average prices was $55.40.
Producers who have strong pastures and excess stocking capacity are leading the charge to purchase breeding stock. Feeders are also taking a significant portion of the share, while processors are taking less as they are unable to compete on price.
The yearling heifers entering this week were also 10kg heavier on average than last week. This demonstrates that prices are incentivising producers to add additional weight to animals at present.
A big rainfall event is predicted to hit Queensland this week, forecast to bring falls of up to 200mm to areas of Queensland and northern NSW. Provided that the summer rain continues, the current market dynamics may continue as restocker sentiment grows in northern Australia.
If rains don’t continue until Easter, it remains to be seen if the restocker sentiment, and reduced supply, will remain.
© Meat & Livestock Australia Limited, 2021
