Both sides of the economic equation are conspiring to keep the Eastern Young Cattle Indicator at record levels for this time of year.
EYCI yardings for the past four weeks have been 20 per cent lower than this time last year, reason enough for prices to be stronger. Combined with demand from restockers and feeders, who have much cheaper feed, the EYCI is 9 per cent higher than this time last year, closing the week at 638.25¢/kg cwt.
There were no saleyard quotes in WA this week, but over the hooks rates are stronger than east coast equivalents at 580¢/kg cwt for an MSA Yearling versus 554¢ on the east coast.
Rain in Queensland would help support young cattle prices, but it looks like supply is unlikely to improve until the autumn. Cattle markets should start to find support, subject to beef export prices.