Key points:
- MLA's Market Information team has released a new restocker yearling heifer indicator today, the first of an array of changes in line with its indicator review.
- Market prices at present reflect longer-term trends with the market softening towards the yearly shutdown for cattle prices.
- Tighter supply of sheep and lambs saw the market improve favourably across all categories.
- Volatility in both sheep and cattle markets continue, as has been the trend for 2022.
New indicator: Restocker Yearling Heifer
Today, MLA's Market Information team released the Restocker Yearling Heifer Indicator, the first release in a number of new and improved indicators which are the result of a wide-ranging indicator review process.
The Restocker Yearling Heifer Indicator includes yearling heifers bought by restockers weighing 200-400kg including all fat and muscle scores. Users of the indicator will be able to filter for weights, fat and muscle scores on a state and regional level, ensuring more tailored and specific pricing information can be utilised to inform business buy and sell decisions.
To view the Restocker Yearling Heifer Indicator, click here.
Cattle
The cattle market continued to soften this week, with buyers indicating finished quality is determining price performance. Opportunities do remain for buyers to purchase stock to trade and add weight. A very solid market on Thursday at Dubbo and SELX Yass saw the EYCI rise 15c overnight and finish the week at 869c, a marginal fall of 6c/kg cwt week-on-week. Thursday's price performance in the EYCI was reflective of a general improvement across most categories.
In the west, the WYCI also found support from a solid Mount Barker sale and lifted 22c or 2.6% overnight and week-on-week to reach 892c/kg cwt. At present, Mount Barker is operating at a 19% or 146c/kg cwt premium to its Muchea counterpart.
The medium cow indicator found support and improved 10c over the week to finish at 272c/kg lwt, with processor demand the key driver of this improved market performance. Currently, finished cattle prices are holding up better than young animals in an indication that processor demand for quality stock with weight and finish are in demand. This has provided producers an opportunity to offload heavier cull cows to allow their country to perform favourably.
Feeder buyers continued their cautious buying behaviour due to current challenges within the sector relating to input costs and labour. This saw the national indicator fall a further 8c week-on-week to finish at 442c/kg lwt.
Although the cattle market has receded sharply, it is operating in a more typical fashion as the year nears the end (i.e. buyer demand wanes and the market generally softens up). 2021 was the exception, although longer-term trends show these seasonal softenings in prices as the year ends are not uncommon.
Sheep
The sheep and lamb markets found support this week with prices across all categories improving. Tighter supply placed upward pressure on prices with total national yardings softer by 21% or 75,411 head.
In the lambs, the Heavy Lamb Indicator continues to operate at a solid premium to its trade counterpart, higher by 8% or 56c to finish the week at 754c/kg cwt. Market commentary from the NLRS Livestock Market Officers indicates that producers' lambs with weight and finish are receiving the best results at the market.
The wet conditions have ensured a glut of store quality lambs available and will provide producers a trading opportunity to background or grow out over summer on stubbles.
The mutton market also lifted from its yearly low last week of 313c to finish this week at 360c/kg cwt. Tighter supply of sheep clearly the key driver, with the indicator's volumes halving over the week, forcing buyers to compete more heavily across a limited supply pool.
Final edition for 2022
This will be the last The Weekly e-newsletter for 2022. The first release in 2023 will be Friday 13 January.
Attribute above content to: Ripley Atkinson, Senior Market Information Analyst
