Conditions have started to dry out across several key livestock regions over the past month following the mild winter, including south-west WA, northern NSW and southern Queensland. This has begun to influence prices, with the impact most evident in restocker categories for both cattle and sheep.

Australian cattle prices rebounded sharply in May after trending lower since mid-March. The shift reflects a classic supply-and-demand pivot: rain improved producer sentiment, cattle yardings tightened, and buyers for restocking, feeding and processing all came back into the market at the same time.

Cattle prices are tracking well above year-ago levels, with young cattle maintaining a premium to their finished counterparts.

Over-the-hook (OTH) cattle indicators gained momentum this week, following tightened supply resulting from widespread rainfall across many parts of the eastern states.

Global cattle prices converge

Cattle prices approach historical highs

For the week ending Tuesday, the Eastern Young Cattle Indicator (EYCI) improved 10¢ on the week prior, to average 488¢/kg carcase weight (cwt), back 1% on year-ago levels.