Accordingly, the benchmark EYCI suffered the largest weekly fall on Thursday since the beginning of 2003, dropping 24.5¢ to finish at 296.75¢/kg cwt.

Supply jumps

Numbers at MLA’s NLRS reported saleyards increased 58% nationally with the return to a full trading week in NSW, SA and WA, along with the continuing dry seasonal conditions forcing more cattle into the marketplace.

State throughput in NSW, SA and WA doubled, Victoria yarded 23% more and Queensland was 22% higher. Wodonga had a record yarding, Wagga and Shepparton again yarded large numbers, and Gunnedah also had a big sale. Longreach again had a large yarding, with most stock entering from western districts and the NT, where recent warmer temperatures have forced more numbers onto the market. However, there are areas to the north of Longreach that have good pasture reserves, with restockers making purchases from the Richmond, Julia Creek and Muttaburra districts. Numbers are anticipated to steadily decline at most northern Queensland centres as the season progresses.

Feed availability is becoming a concern in all states, with grain prices continuing to rise and lucerne hay not as abundant as in previous years. Victorian producers have scurried to secure supplementary feed supplies over the past few weeks, lifting prices further, as grain yields in both the eastern states and WA are forecast to be well down on last year.

The dilemma now faced by producers is whether to continue to purchase supplementary feed in hope of a late spring break or to sell stock now and potentially re-enter the market for store cattle when the season improves. Producers who have been fortunate enough to bale lucerne are also weighing up the options of utilising their feed reserves for their own livestock or selling off both the hay and livestock in the coming weeks. Another major concern, particularly in Victoria, is water availability for both crop irrigation and stock drinking water.

Processors head south

Higher cattle availability in the south has had a downward effect on prices and resulted in northern processors capturing additional numbers from southern markets. Prices were reduced across the majority of categories in every state except WA.

Source: mla.com.au