East coast cattle slaughter reached its strongest level since December 2016 in the week ending May 12.
It’s interesting that this is around the time cattle slaughter traditionally peaks, as cattle out of Queensland bolster stocks.
Last week, it was a case of tightening supply, with east coast cattle yardings falling 20 per cent as lower prices meant growers held stock back. Yardings were, however, still stronger than they have been for much of autumn. The Eastern Young Cattle Indicator had a rally on the back of tighter supply, gaining 16¢ to 650¢/kg cwt.
While it is difficult to envision the EYCI exceeding the 2016 high this winter, the 90CL export price is doing the right thing, having rallied to 650¢/kg cwt.
The EYCI and 90CL are back at level pegging for the first time since last year.