CATTLE supply has tightened quick and heavy on the back of rain in key growing regions, pushing the Eastern Young Cattle Indicator to a record 607.75 cents per kilogram carcase weight today, up almost 20c/kg week-on-week and 2c/kg above the previous high in February this year.
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In some parts of central Queensland, the falls have been significant enough to have agents predicting it will be 18 months before cattle out of their country are likely to be offered again.
The EYCI is now well over 100c/kg above where it was this time last year - the latest rise fuelled by some of the lowest yardings so far this year at key saleyards, including Roma, Queensland, where a decline of 71 per cent was recorded last week.
Numbers picked up at Roma today as producers sought to cash in on a jump of as much as 29c/kg in places for steers as NSW restockers and feedlotters entered the market.
PJH Livestock agent Steven Goodhew said it was likely the upward pressure on prices would continue for the next month at least.
“Demand is outweighing supply and talk is of more rain this weekend, which will only push things further down that same track,” he said.
“Graziers around here have planted oats, hence the short supply kill cattle, but the prices are good across all categories.”
Meat and Livestock Australia market analyst Robert Barker said rain across NSW, southern Queensland and parts of central Queensland had played a big role in the decline of numbers at major saleyards.
“In some cases it was the logistics of not being able to get cattle out of paddocks but it was more to do with producers holding onto stock to get that last bit of growth in,” he said.
“In some areas the rain has been enough to entice producers to keep heifers and cows on for another season that might have otherwise been sold going into winter.”
Over-the-hooks indicators also rose 10 to 20 cents this week in reaction to tightening supply, Mr Barker said.
All major NSW and Queensland indicators were pushed to the highest level recorded so far this year.
MLA’s slaughter figures also reflect the massive tightening, with the national total back 9pc year-on-year. Queensland processed just 71,747 head.
Livestock agent with Ray White at Blackall, Paton Fitzsimons, said the weekend’s rain was follow-up on previous good falls, some over 120mm, in parts of central western Queensland - and more was forecast for this weekend.
“Producers who have cattle now - those who gritted their teeth and pushed through - will be rewarded immensely for their investment,” he said.
Blackall’s last fortnightly sale was cancelled due to lack of numbers.
Agents said one concern was how those paying $1000 for calves - who will soon likely be paying $1200 - will come out down the track.
The last of the northern NSW weaners go to market in Casino on Friday in what is expected to be a telling sale.
Darren Perkins, George and Fuhrmann, said the tightening could only continue.
“The market has been so strong for so long that people have opted to keep taking the money and haven’t wanted to replace on a dearer market, so numbers are not coming through,” he said.
“Many still say the market is too hot and they will hold back but at some stage they have to replace.”
Victorian agent Neil Darby, Alex Scott and Staff at Warragul, said Gippsland had received reasonable rain but pasture growth had been slow.
“We sold a lot of cattle earlier on because of the tough season and we certainly haven’t bought in anywhere near the numbers we normally would,” he said.
“Numbers are always relatively low heading into winter but this is lower than normal.
“The market is very strong, gradually getting dearer each week, and all signs at that is likely to continue.”
