The Eastern Young Cattle Indicator (EYCI) has cracked 600¢/kg cwt for the first time on record today (Wednesday).
The EYCI is a seven-day rolling average and is the general benchmark of Australian cattle prices. Beef producers and market analysts have been watching the EYCI closely for months as it approached the 600c/kg cwt mark.
“Widespread rain – albeit far from drought breaking in many cases – over the Christmas period acted as the catalyst for many producers to retain stock, while also drawing out strong competition for the limited pool of cattle,” Meat and Livestock Australia’s Manager of Market Information, Ben Thomas said.
“Tuesday’s sales resulted in the indicator jumping 14.5¢, before a further 1.25¢ lift today meant the landmark of 600¢/kg cwt was obtained.”
Markets that had particularly large price jumps were IRLX Inverell, where EYCI-eligible cattle lifted nearly 60¢ from the week before, averaging 620.25¢/kg cwt. Perhaps even more impressive, in the first sale for the year, EYCI-eligible cattle at Roma averaged 660.5¢/kg cwt – up 191¢ from the first sale of 2015.
Dalby and Singleton also performed well today, with EYCI-eligible cattle averaging approximately 610¢/kg cwt at both centres.
“The expectation is that cattle availability will remain tight for January, and thereafter will depend on the timeliness of follow-up rainfall.
“While the EYCI hitting 600¢ marks a significant milestone in the Australian cattle industry, the benefits will only be reaped by those in the fortunate position of having cattle to sell – after what was an unprecedented three years of cattle turn-off,” said Mr Thomas.
