Cattle Prices Surge: Eastern Young Cattle Indicator Breaks New Ground

This week, saleyard prices have seen a remarkable upswing, with the benchmark Eastern Young Cattle Indicator (EYCI) exceeding 750 cents per kilogram (c/kg) carcase weight for the first time this year. This marks a significant increase for the cattle market.

Northern saleyards have reported substantial numbers, with Roma agents managing over 10,000 head for the second consecutive day. Additionally, 6600 are scheduled for auction at Dalby tomorrow, contributing to a vibrant market atmosphere.

The EYCI closed at 759c/kg carcase weight yesterday, reflecting a gain of 119c compared to the same period last year. As of Tuesday afternoon, the indicator had even climbed higher, reaching 772c/kg.

The last instance of the EYCI surpassing 750c was in February 2023, during a downward market trend from its peak of over 1000c the previous year. After remaining relatively stable between 650c and 700c throughout much of 2023, the EYCI has been on an upward trajectory since mid-May, nearing the 750c milestone last week with a close of 747c/kg.

A significant factor in pushing the EYCI above 750c is this week’s Wagga sale, with its contributions averaging an impressive 908c. The Roma auctions are still ongoing, as agents process another 10,000 head, with full results pending.

Cows in Demand

The demand for heavy cattle continues to grow, particularly in Victoria, where drought conditions have led to a shortage of heavy livestock. This has resulted in a steady stream of cows entering the saleyards, with over 2000 reported in Roma today alone, and another 2000 anticipated for tomorrow’s Dalby auction.

The Meat & Livestock Australia’s processor cow indicator has been on the rise since mid-June, escalating from 272c/kg to close yesterday at 315c/kg liveweight, reflecting the robust demand in the market.

Understanding the Eastern Young Cattle Indicator

The Eastern Young Cattle Indicator (EYCI) serves as the primary benchmark for Australian cattle prices. This indicator is a seven-day rolling average produced daily by the MLA’s National Livestock Reporting Service. It includes vealer and yearling heifers and steers graded C2 or C3 with a liveweight of 200kg or more, sourced from saleyards in New South Wales, Queensland, and Victoria. The EYCI figures account for cattle purchased for slaughter, restocking, or lotfeeding, and are expressed in c/kg of dressed weight.