Demand for cattle keeps soaking up supply
Shan Goodwin, Queensland Country Life (AU)
27 Apr 2021
YOUNG cattle prices continue to hold up in the face of increased supply, adding weight to the argument that the predicted market decline in the second half of this year will be relatively restrained.
Slaughter remains well down, pointing to overall supply tightness.
Agents, producers and analysts agree it will be some time yet before supply goes anywhere near meeting demand. Most think it's unlikely the Eastern Young Cattle Indicator will go much below 750 cents a kilogram carcase weight before the end of the year
The EYCI has remained above the $9 mark all week, sitting today at 902.75c, up 15c on four weeks ago.
On AuctionsPlus, the largest supply of heavy 400 kilogram-plus steers in several weeks was greeted with very strong buyer activity and prices averaged $2,096 a head, up $235 on the previous week. Online young cattle prices were dearer for all but one category.
Experienced producer and former Cattle Council of Australia president Howard Smith, Rolleston in Queensland, said the herd remains significantly low...