THERE is some argument for a little more upward movement in the cattle market this month based on good seasonal conditions and overseas demand for beef.
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However, most analysts and agents are using the words 'stabalise' at the moment, saying there are signs prices have reached their bottom for the time being at least.
Rabobank's latest Agribusiness monthly makes the point that heavy steer prices have been steady for the past fortnight, and processor cow prices have actually risen, which augurs well for the young cattle market.
Restocker steer prices are yet to start the upward climb, which Rabobank suggests is due to less favourable trading conditions for backgrounders still carrying expensive cattle from quarter three last year.
With no sales over Easter, the Eastern Young Cattle Indicator remains at 699.52 cents a kilogram carcase weight today, having jumped 21c on the previous week. While it has lifted from a bottom of 665c at the end of March, it is still 396c behind the year-ago value.
Feeder buyers are currently taking the largest share of EYCI-eligible cattle, at just under 50pc.
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Senior analyst animal protein Angus Gidley-Baird said Rabobank's modelling suggests the market may be a little under where it could be right now.
"US import prices are trending up and, together with rainfall across much of eastern Australia, that should support autumn pasture growth and cattle prices, possibly leading to a slight lift in coming months," he said.
"While most parts of Victoria and NSW have rebuilt their herds and are not looking for big numbers anymore, we are not expecting a flood of cattle to come forward and depress prices any further.
"Central Queensland does have some ability to create upside if producers there are confident they will have the grass to feed a few more head."