Widespread rain across northern Australia disrupted key cattle sales this week, driving national yardings sharply lower and lifting most cattle indicators. Sheep and lamb yardings also fell while prices eased, and cattle slaughter declined after last week recorded the second-highest weekly rate in six years.

Heavy rain and localised flooding across northern Australia last weekend disrupted cattle movements, tightened supply through key selling centres, and shifted price signals across the eastern states.

Global cattle prices converge

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.

The Western Young Cattle Indicator is performing strongly, up 230¢ from the same period last year. It is now closely trailing its eastern counterpart.

Cattle prices have trended down in 2018 with drought conditions putting increased pressure on the market. However, some states have been more stable than others.