![The cattle market is feeling the heat of increased supply. Picture by Sally Gall. The cattle market is feeling the heat of increased supply. Picture by Sally Gall.](/images/transform/v1/crop/frm/38U3JBx5nNussShT8aZyYjc/c34a99a2-3ac8-465e-b13d-4f5e79001bbb.jpg/r0_204_3998_2461_w1200_h678_fmax.jpg)
BIGGER numbers flowing from the spreading patches of dry cattle-growing country across the eastern states are putting heavy pressure on the market.
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The Eastern Young Cattle Indicator is shaking at the knees, dropping back to a new record low for this year and a level not seen in two-and-a-half years. It finished yesterday at 640 cents a kilogram carcase weight, a whopping 457c below the year-ago level.
Agents report restocker confidence has taken a knock. Despite prices still being strong historically speaking, the 2023 correction was sharp and rather a slap in the face after years of record markets. Restockers' take of the EYCI cattle pie has dropped back significantly to just 41 per cent.
Meat & Livestock Australia analysts reported total national yardings across all categories have just reached their highest level since late 2020. Last week, yardings were 58pc above the weekly average so far for 2023.
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The areas of dry country are growing but those forced to sell weaners early are certainly not giving them away.
Elders national livestock manager Peter Homann said there were now dry patches throughout western and southern NSW and Queensland.
"But where it's good, it's very good," he said.
"In the south, there has been an excellent general autumn break and that is helping to support the overall market. It means everyone creeps looking for stock - Victorians into NSW; NSW into Queensland.
"Where it is dry, many are also trying to hang in there a bit longer to see what happens.
"Numbers traditionally start to roll at this time of the year anyway, so while supply is up it's not a great flood of offloading but it has coincided with restockers being quieter just because the correction gave them a bit of a check."
Dry conditions around Roma, compounded by a missed public holiday sale, saw the saleyard that is the biggest contributor to the EYCI notch up two massive yardings in a row, with more than 10,000 head sold in just one of those sales.
Producers in this region report there is little chance of growing much bulk grass for winter, placing all hope now on oats crops.
MLA analysts said supply was affording buyers the luxury of choice and therefore depressing demand, although finished cattle prices continue to outperform the restocker and feeder markets.
Mecardo analyst Adrian Ladaniwskyj said price firmness in this category could be explained by late mustering in the north restricting numbers.
Of course, that will also mean an increase in Queensland finished cattle supply further into winter.
With the Bureau of Meteorology's outlook being less than encouraging, and the late flow of finished northern cattle still to come, it's hard to see any sustained upside in cattle markets in the near term, Mr Ladaniwskyj said.