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.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