WA market outperforms Eastern States
Value of young cattle in WA saleyards continues to trump the Eastern States, despite suffering a dramatic drop last week.
The Western Young Cattle Indicator closed at 478¢/kg carcass weight last Friday, after shedding 40¢, to hold a price advantage from the Eastern Young Cattle Indicator’s 461¢/kg cwt.
Mecardo analyst Angus Brown said the WA market had outperformed the volatile Eastern States’ indicator, which had been hit by dry weather across growing regions.
“A fortnight ago we were talking about the Eastern Young Cattle Indicator yo-yo going up,” he said.
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“This week the yo-yo went down, with young cattle prices falling back towards April lows.
“When looking for a culprit, it would seem a return to dry conditions might be to blame.”
Mr Brown added a dry start to WA’s autumn had made an impact on markets.
However, he doubted the rain across the State’s South West earlier this week would lead to a dramatic rise in the WYCI.
Mr Brown also said it was unlikely finished cattle prices would fall further, with supply unlikely to rally until spring.
According to Meat and Livestock Australia, Eastern States’ processor demand for EYCI-eligible cattle gave a minor market boost last week.
Trade steers in the Eastern States were reported at 291¢/kg live weight last week, above the 248¢/kg live weight reportedly on offer in WA.
Eastern States’ medium steers were at about 266¢/kg live weight, above the 232¢/kg live weight available in WA.
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