Young cattle prices dance in the rain
05 May 2016
More than 25mm of rain fell across parts of the eastern states this week, triggering an immediate halt and reversal in the downward Eastern Young Cattle Indicator (EYCI) trend of recent months.
Stimulated by tighter cattle availability and refreshed producer confidence, the indicator jumped 24.25¢ from last week, to close Thursday at 570¢/kg cwt.
Some of the biggest weekly increases in EYCI-eligible cattle were at Armidale (46¢), Dalby (21¢), Singleton (25¢), CTLX Carcoar (30¢), Gunnedah (35¢), Inverell IRLX (35¢), Roma Store (27¢), Scone (23¢) and Dubbo (20¢). Very few markets traded lower than the previous week.
Interestingly, despite a similar amount of rainfall over the past week in NSW and Victoria, the NSW markets generally responded better, assisted by a much larger reduction in yardings.
In a similar fashion, the Western Young Cattle Indicator (WYCI) increased 4¢, to finish at 615¢/kg cwt. It has been an unusually wet start to the year for southwest WA, in contrast to the dry season across most of the eastern states, which is one of the main factors behind the western indicator sitting above its eastern counterpart.
The weeks ahead will more than likely see restocker confidence for young cattle remain and availability will become tighter. However, the longevity of this positive outlook will hinge on whether or not the encouraging three month rainfall outlook for southern Australia comes to fruition.
