Market rockets on as EYCI hits new heights

Market rockets on as EYCI hits new heights

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Agents say bigger yardings are still nowhere near meeting demand.

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FAMILY: Merilyne Johnson, Lea Worseldine and Whitney McCormack, Creighton Grange Angus Partnership, Mount Taylor, sold 22 steers, 413kg, for $2160 or 523c/kg at Bairnsdale on Friday. Photo by Bryce Eishold.

FAMILY: Merilyne Johnson, Lea Worseldine and Whitney McCormack, Creighton Grange Angus Partnership, Mount Taylor, sold 22 steers, 413kg, for $2160 or 523c/kg at Bairnsdale on Friday. Photo by Bryce Eishold.

A big spike in numbers on offer has done nothing to ease the heat in the cattle market.

The benchmark Eastern Young Cattle Indicator continues to climb further into record territory after barrelling over the 900 cents a kilogram carcase weight level for the first time in history last week.

By the end of trading on Tuesday, the EYCI had hit 910c/kg.

The national yarding more than doubled last week, yet agents report supply is still nowhere near meeting demand.

Agents reported that the extra numbers came on the back of producers anticipating the rise and looking to cash in and some availability of weaners typically marketed at this time.

Thomas Elder Markets calculated the east coast yardings last week to be 132 per cent above the previous week.

That meant for the first time this season, the weekly east coast throughput was above the seasonal average trend, according to analyst Matt Dalgleish.

Queensland jumped a whopping 188pc, NSW 125pc and Victoria 50pc.

Restockers are making up a large percentage of the successful buyers, with Meat & Livestock Australia analysts saying rainfall across much of the supply area has invigorated confidence, combined with the desire to acquire as many cattle as possible to ensure production heading into winter.

CL Squires agent Robbie Bloch, Inverell, NSW, said even though numbers were up last week, they remained just a fraction of what would be considered normal at this time of year.

"Up to 20,000 weaners have historically gone through Inverell in autumn, this year we'll have 5000," Mr Block said.

"The cattle are just not there, and won't be for some time.

"It's that extremely tight supply that is underpinning the price rise."

He said the pandemic had also changed the shape of things, in that the strength of the domestic market had gone with the cattle market rise.

"That domestic demand has meant that where exporters have pulled up, domestic fellows were still there and giving enough money at the end to entice the restocker to pay the higher prices," he said.

In Victoria, demand is also way outstripping supply, with restockers and feedlotters, including northern demand, scrambling to secure supply.

Corcoran Parker agent Gordon Perkins, Wangaratta, said buyers had now recognised if they wanted to stay in cattle, this was where the buy-in price was at.

Mr Perkins said while the region was now looking for rain grass-wise, two tremendous seasons in a row had meant enormous amounts of silage were cut last year and the need for mouths to feed was red hot.

Numbers have also continued to climb online, with AuctionsPlus recording a 13pc week-on-week jump.

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