A fortnight ago, multiple market drivers were placing downward pressure on the market. This week, similar drivers are having the opposite effect and are causing cattle prices to continue to rally across all reported categories. Solid rainfall across most regions tightened cattle supply significantly this week, with national yardings falling by 3,358 head or 14% week on week. The largest falls were in NSW and Queensland, where supply tightened by 20% and 16% respectively.
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Tighter supply and improving buyer confidence has placed upward pressure on demand, driving restockers in particular to pay for quality stock. Cattle with better finished quality across most saleyards have demanded strong buyer attention. This demand has supported price rises that have incentivized buyers to pay more –particularly feeder and processor buyers, who need to secure cattle against restockers in a tight supply market. This week, the Eastern Young Cattle Indicator (EYCI) rose a further 43¢ or 5% week on week to finish at 961¢/kg cwt. Meanwhile, the restocker to feeder premium widened to its highest level since mid-June, when the EYCI was operating above 1,100¢/kg cwt. This demonstrates the return of producer confidence to the marketplace and the willingness of buyers to pay for stock. Further evidence of robust restocker demand has been the lift in the restocker yearling steer prices. These prices rose 8% or 46¢/kg lwt week-on-week to reach its highest level in over a ...
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