Wednesday 17 October 2012
Cattle prices come back
At the start of spring 2012, the benchmark EYCI was at 388¢/kg cwt. However, throughout the past six week the EYCI has lost 37¢, finishing Thursday at 349.50¢/kg cwt.
The drier conditions in Queensland and NSW in late winter and spring have had an influence on the quality of young cattle offered at physical markets.
While spring would normally see plainer cattle purchased by restockers and feeders, the growing uncertainty about the season and sluggish demand outlook has seen producers taking a more cautious approach.
Restocker and feeder activity across the eastern states has been rather erratic since the start of spring. The percentage of restocker purchases included in the EYCI during September increased by 4% on the previous year, while feeder buyers were reluctant to purchase younger cattle. Buyers in Queensland were less active, as the total number of cattle contributing to the EYCI declined on last year, as Queensland restocking purchases fell by 2% year-on-year.
Source: Argentine Beef Packers S.A.
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