The Eastern Young Cattle Indicator eased another 25¢ this past week, heading back through support at the 514.50¢/kg cwt level.
The fact there has been no real rain in April, in addition to the usual increase in young cattle supply in northern NSW, is helping drive the EYCI lower. However, heavy cattle prices remain relatively strong. The NSW Heavy Steer Indicator is actually sitting close to a nine-month high, at 512¢/kg cwt.
The 2¢ discount for the heavy steer is as close as it’s been to the EYCI since spring 2015.
The bad news for cattle producers is that seasonality suggests that continued dry conditions are likely to see young cattle prices continue to fall. The fall usually runs until at least May, and this could see the EYCI below 500¢ for the first time since the first half of 2015.