As we enter the new financial year and observe a shift in the market, we thought it was a great opportunity to look at where the current cattle market is positioned and the key factors influencing it.

The Australian cattle market continues its upward trend, with strong gains across major indicators over the past 12 months. Feeder and restocker categories have shown notable growth, with the Feeder Steer Indicator up 60c/kg year-on-year, while Processor Cows and Restocker Steers have also improved steadily.

The Eastern Young Cattle Indicator (EYCI) has risen by 22% since January 2025, reflecting growing confidence in young cattle markets.

The Key drivers behind the recent momentum:

• Weather Conditions: Recent rainfall, particularly across Queensland, has boosted pasture growth, enhancing restocker confidence and increasing demand for young cattle.

• Export Demand: With U.S. cattle inventory at 86.7 million head as of January 1, 2025 — the lowest since 1951 — international beef demand has surged. Australia has benefited from this, with our beef viewed as a reliable and high-quality option, particularly given recent trade dynamics impacting other suppliers.

• Slaughter Rates: The week ending 27/06/2025 saw 158,922 head processed — the highest weekly total since December 2019. This spike in slaughter may front-load supply and could lead to tighter availability later in the year, especially if producers begin retaining females for herd rebuilding.

• Exchange Rate: The AUD/USD remains historically low, trading between 0.65–0.68. This depreciation enhances Australia’s export competitiveness, supporting stronger processor margins and underpinning saleyard prices.