Finishing at 542.75¢/kg cwt, at the close of Tuesday markets the Eastern Young Cattle Indicator (EYCI) was 36.25¢/kg cwt behind week-ago levels and 52.50¢/kg cwt below where it peaked a fortnight ago. Not since 2006 has the Australian cattle industry witnessed a 30¢/kg cwt weekly fall in the EYCI, and prior to then it had only occurred once before, in 2002 (the EYCI first began being recorded in 1996).
Hot, dry conditions across the east coast have seen high offerings, and buyer confidence has not been buoyed by the Bureau of Meteorology’s (BOM) latest three month outlook, indicating a hotter and dryer remainder of the year for much of NSW and Victoria. Compounding the impact of increased supply, the A$ has recorded some modest growth while the US beef market is much weaker than year-ago levels.
A decline in cattle prices usually occurs in October and November, as additional southern supplies come onto the market with the approach of summer.
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