History made, records paid

The Eastern Young Cattle Indicator (EYCI) peaked at 725.75 cents a kilogram (carcase weight) in mid-August. 

This year was the first time the EYCI recorded prices above 700c/kg and certainly sent both buyers and sellers into a spin. 

Buyers had to reassess their margins and budgets while many graziers went looking in their back paddock to find stock to sell to take advantage of the surging prices.

The year started with the EYCI tracking about the 585c/kg mark, but quickly climbed to 600c/kg a few days into trading – partly spurred on by sky high prices at the annual southern weaner sales in Victoria. 

By mid-June there was plenty to fuel the market and it rose swiftly to hit 660c/kg by the end of that month. After steadying around this level for another month, the market took off again in August hitting 725.75c/kg.   

Behind the big price boost was a severely depleted national cattle herd leading to reduced supplies of young stock at saleyards.

Both 2014 and 2015 were record years for adult cattle turn-off. Also playing a part was the widespread rain across many cattle producing areas. This resulted in fierce restocker competition.

It also created a bidding war on the buyer’s rail at saleyards between restockers replenishing breeding herds, processors, backgrounders and lot feeders. 

As the trading year drew to a close Meat and Livestock Australia (MLA) reported restockers continued to take a much bigger share of the cattle when compared to past years.

In November, MLA reported the EYCI has averaged more than 55c/kg above the same time in 2015, at 654c/kg, with the restocker buyer premium 40c/kg higher year-on-year.

Furthermore, the portion of EYCI eligible cattle bought by restockers had lifted to 36 per cent in November, compared to 24pc the same time last year – with proportions to feeder and processor buyers lowered as a result, to 45pc and 19pc of total yardings, respectively.