USA: Rain delay over as supply bounces back

Published 2023년 3월 24일

Tridge summary

The Eastern Young Cattle Indicator (EYCI) has fallen 13¢ to 669¢/kg cwt, the lowest in three years, with the supply of young cattle strong and prices 40% lower than a year ago. The supply increase was driven by rain in Queensland, leading to a sixfold increase in offerings at Roma. However, national indicators also fell due to increased supply, with processor cows and feeder steers softening by 9¢ and 8¢ respectively. US frozen cow 90CL price increased by 15¢ to 845¢/kg, driven by a native price increase and a 1% strengthening in the Aussie dollar against the greenback. US cow slaughter continues to track lower, down 8% from 2022 levels, but there is forward risk of a downturn in US beef demand due to macroeconomic conditions caused by the recent banking crisis.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Eastern Young Cattle Indicator (EYCI) backtracked another 13¢ (2%) this week, coming to rest at 669¢/kg cwt. Prices for young cattle haven’t been this low in nominal terms for more than three years, and we are now operating at a level 40% below where we were a year ago. In the depths of the 2019 east coast drought, prices reached well below the 500¢/kg mark before rocketing quickly to around current levels in the space of a couple of months.Currently, the supply of young cattle across the east coast is very strong, after being subdued by the rain in Queensland, the offering at Roma exploded sixfold to 6,800 head, returning it to its rightful place as the index’s top contributor for the week. Roma steers traded at 790¢/kg cwt. Dalby, Gunnedah, and Tamworth were next in line, making up 27% of the index between them, with steers making 726¢/kg, 718¢/kg, and 716¢/kg respectively.Overall, east coast yardings snapped back quickly, pegging a 47% week-on-week increase as Queensland ...

Source: Mecardo