October cattle market update

Highlights for cattle

• Australian cattle prices showed relative stability throughout September. The National Young Cattle Indicator lost -2.0 per cent throughout September to now sit around 460 c/kg, while the National Heavy Steer Indicator gained +3.0 per cent.
• Prices continue to be supported by strong export demand, as well as high processor capacity as indicated in the graph on the right. Cattle slaughter averaged 149.6 thousand head per week in September, up 14.4 per cent compared to September last year and relatively in line with August. While export demand, primarily from the US, continues to provide underlying support for beef prices.
• Comparatively favourable seasonal conditions across the northern growing regions continues to provide some support, although drier conditions more recently and across the south are limiting restocker activity. Should the favourable conditions forecast in the BOM’s three-month outlook eventuate, an increase in restocker activity will continue to support prices.
• Prices are expected to continue to track sideways over the next few weeks, although if dry conditions persist throughout October, we may see markets soften.

Sources: Meat & Livestock Australia (MLA)

Joe Boyle

Agricultural Analyst

Joe is our Insights specialist for the sheep industry. He hails from a cropping and sheep farm in northwestern Victoria and has studied a Bachelor of Agriculture at the University of Melbourne.