Australia: Softer beef supply brings a lift

The Eastern Young Cattle Indicator (EYCI) halted its downward run and closed the week up 11¢ (2%) to reach 669¢/kg cwt. The usual suspects Roma, Dalby & Dubbo contributed to 55% of the index’s volume, with steers trading at 770¢/kg cwt, 755¢/kg and 695¢/kg respectively, while further south in Wagga, steers moved at 723¢/kg. Rain in southern Queensland and parts of NSW may have provided producers with additional confidence in medium-term pastoral conditions. A pullback on young cattle yardings this week was evident in response as EYCI eligible yardings fell 19% this week down to 12,506 head.The April and May period has historically seen a lower yarding of cattle. If the pattern holds, reduced downward pressure on prices may lend some temporary stability to the market, until more confidence in the El Niño and pastoral situation emerges.A significant improvement in Chinese perceptions of Brazilian food safety, and Brazilian access to the Chinese marketplace poses a credible threat ...