Last week’s east coast cattle slaughter made a new low for this year, hitting 107,326 head. Cattle slaughter hasn’t been this low since this exact week in 2005.
In terms of price, the EYCI maintained its strength, closing 2.5¢ higher at 717.25¢/kg cwt. But in 2005, it was at this time in the season that the decline started.
It’s remarkable how close the slaughter and price charts correlate between this year and 2005, and it could very well continue.
Countering the possible fall is the latest three-month weather bureau outlook, showing there is a 55-80 per cent chance of above median rainfall across major cattle areas. October is expected to be the wettest month.
If this forecast eventuates, we may have to wait until November to see a price fall. Or, it may not come at all for young cattle.
