Prices ease on back of bleak forecast

Mecardo: Prices ease on back of bleak forecast

Analysis
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The EYCI fell 3.6 per cent to its lowest level in more than three years, to close at 434c/kg cwt last week.

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The BOM's latest release points to a delayed Autumn break, and much lower chance of rainfall exceeding the median across much of the eastern half of the nation from March to May.

The bleak forecast and increased cattle yardings along the east coast conspired to see prices for younger store cattle and breeding stock ease last week.

The Eastern Young Cattle Indicator (EYCI) fell 3.6 per cent to its lowest level in more than three years, to close at 434c/kg cwt.

Cattle throughput in the eastern states lifted 14 per cent on levels set the week prior, to sit 5 per cent above the five-year trend for this time in the season.

Young cattle in the east were not the only cattle type to register a decline, with the medium cow indicator leading the percentage price falls to see nearly a 5 per cent drop to 175.9c/kg lwt.

Feeder steers also eased slightly, down 1.4 per cent to 250.4c/kg lwt.

Although, trade, medium and heavy steers are beginning to show signs of supply concerns by posting 1 to 6 per cent price gains across the eastern states.

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