The Eastern Young Cattle Indicator has now lost 37c over the past six weeks, finishing yesterday at 349.5c/kg.

 

At the start of spring on September 1, the benchmark sat at 388c.

 

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, which is partly driving the downturn.

 

Good rainfall registrations of 10-25mm across large parts of southern Queensland and northern and Central NSW in the past 48 hours have been helpful, but in most cases will not be enough to re-inject confidence into the  seasonal outlook for producers. More rain is predicted, particularly in coast areas, for Sunday, however.

 

While spring would normally see plainer cattle purchased by restockers and feeders, the

uncertainty about the season and sluggish demand outlook has seen producers taking a more cautious approach this year.

 

In its weekly markret report issued this morning, Meat & Livestock Australia says 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 four percent 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 2pc.