Restocker Demand Sustains Price Increase
AUSTRALIA - A recovery in the Eastern Young Cattle Indicator (EYCI) over the past fortnight has been underpinned by rejuvenation in restocker demand, along with a contraction in available supplies, following the post-Easter influx, reports Meat and Livestock Australia.
14 May 2012
1 minute read
A surge in supply towards the second half of April put downward pressure on prices, with the EYCI in late April reaching its lowest point for 2012, at 364¢/kg cwt. Although the average during April (379¢/kg cwt) was nine per cent lower year-on-year, it still remained 11%, or 37¢, above the five-year average.
At the close of Thursday’s market the EYCI sustained last week’s gains, finishing on 374.25¢/kg cwt. The majority of MLA’s NLRS eastern states cattle indicators increased this week, with heavy steers recording a gain of 15¢, to 337¢/kg cwt. The trade steer indicator gained 7¢ week-on-week, to 376¢/kg cwt. Medium steers continued their recent run of higher prices, moving 10¢ higher, to 340¢/kg cwt, while feeder steers regained some of the recent lost ground, averaging 15¢ dearer for the week, at 375¢/kg cwt.
Trade and export buyers remain active, keen to secure suitable lines into the cooler months. Additionally, the recent slide in the A$ will be received as welcome news by exporters, especially given the sluggish demand from some large export markets in recent months.
TheCattleSite News Desk
