The National Livestock Reporting Service's Eastern Young Cattle Indicator has suffered a major correction, falling 15c/kg over the past week under the sheer weight of cattle numbers hitting the market.
The EYCI closed yesterday at 375c/kg, a 15c collapse in a week, and now within 5.5c of the lowest point seen for at least the past 18 months.
This time a month ago, the indicator sat at 395.5c, representing a 20.5c/kg decline since.
The correction is being heavily infleunced by cattle numbers, MLA says.
National cattle yardings in the past week were significantly stronger after supplies increased in every state after the Easter holiday period.
The compounding effect of dry weather and cooler temperatures is motivating producers to sell cattle in big numbers before the winter break, MLA said yesterday. This was apparent at Roma sale on Tuesday (see Beef Central’s earlier report here) where 9300 head were yarded, easily the largest sale in Australia this year.
Numbers were also higher elsewhere in Queensland this week; at every saleyards market in NSW; and in Victoria, where yardings doubled in size on a week earlier.
The EYCI movement and its infleucne over the market is discussed in more detail in this morning's lead story, "Grainfed Trading Budget marches back into positive territory," which can be viewed here.