'Ridiculous increases': Cattle market surges amid rain

Cattle prices have seen dramatic increases this week, driven by widespread rain across key Australian livestock production regions, especially New South Wales. Meat and Livestock Australia's (MLA) benchmark Eastern Young Cattle Indicator (EYCI) has surged to its highest point since 2022, signaling robust demand from restockers eager to secure stock.

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I wouldn't say prices have gone through the roof, but we have seen some ridiculous increases during the week.

At the Wagga Wagga saleyard on Monday, young cattle prices jumped by up to 100 cents per kilogram, reflecting a strong determination to acquire livestock. Singleton reported similar trends on Wednesday, where steer calves broke the $6/kg mark, with commission buyers placing numerous new orders following the statewide rain event. Richard Bailey from the National Livestock Reporting Service noted significant increases across the board, with most markets experiencing gains of 40 to 60 cents per kilo.

Heavy cows also fetched exceptional prices, exceeding $4.20/kg in locations like Dubbo, Wagga Wagga, and Tamworth. Dalby even recorded a saleyard record for cows at $4.42/kg. Australian abattoirs processed 166,446 head last week, the highest weekly slaughter level since 2015, positioning Australia for a record beef production year in 2026. The United States remains the largest export market for lean cow meat this year.

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commission buyers had fistfuls of new orders following the rain event statewide

Conversely, grain prices have softened. Clear Grain Exchange reported that rain in eastern Australia has put downward pressure on grain values, with wheat falling by $25 per tonne in some areas. Buyers are adopting a wait-and-see approach as the production outlook for this year's winter crop improves. Cheaper grain provides welcome relief for Australia's feedlot sector, which is currently managing a record 1.62 million head of cattle on feed.

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reflecting determination to secure stock

The Australian Lot Feeders' Association (ALFA) reported a record-breaking first quarter of 2026, with turn-off exceeding one million head for the first time. ALFA president Grant Garey acknowledged the sector's confidence and investment but highlighted ongoing challenges, including global uncertainty, China's market access quotas, Middle East instability, regional droughts, and pressures in fuel and fertilizer markets.

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In recent months, global uncertainty has increased following the introduction of China's market access quota, ongoing instability in the Middle East, drought conditions in several regions, and pressure in fuel and fertiliser markets.