Meat & Livestock News

Understanding the Eastern Young Cattle Indicator (EYCI)

TL;DR: The Eastern Young Cattle Indicator (EYCI) tracks young cattle prices across key Australian regions, reflecting market dynamics influenced by processors, restockers, and feeders, with noticeable seasonal and regional variations in buying patterns.

What is the EYCI?

The Eastern Young Cattle Indicator, commonly known as EYCI, measures young cattle prices across Queensland, New South Wales, and Victoria. It represents the average price in cents per kilogram of carcass weight, calculated from data across 23 sale yards. This indicator includes vealer and yearling heifers and steers, specifically those graded C2 and C3 and weighing from 200kg.

Historical Context and Usage

For over 25 years, the EYCI has been a critical tool provided by Meat & Livestock Australia’s National Livestock Reporting Service. It’s the most frequently reported indicator, crucial for gauging restocking dynamics and projecting market confidence.

Buyer Dynamics

Significant shifts have occurred in buyer composition since 2000, with processor demand moving towards heavier carcasses due to changing domestic and export market needs. Although processors, restockers, and feeders all once had an equal share of market activity around 2010–2013, recent trends show processors withdrawing, leaving feeders and restockers to dominate.

Seasonal Variations

The EYCI also reveals a seasonal inverse relationship between feeder and restocker activity, typically lower from October to April. This trend corresponds to producers’ hesitance to restock during summer, waiting instead to assess post-rainfall conditions. Feedlots, less affected by these conditions, capitalise on reduced competition.

Regional Insights

  • Queensland: The market is stable with spikes usually driven by restocker demand post-summer rains. The average weekly throughput is about 10,080 head.
  • New South Wales: Exhibits more volatility with non-cyclical purchasing patterns. Recent years have seen increased activity from feedlots, although post-drought periods like 2019 and the wet season of 2022 saw a resurgence in restocker demand. Weekly throughput averages at 11,391 head.
  • Victoria: Here, processors and feeders are the primary competitors, driven by a consistent climate that allows cattle to gain weight quickly and efficiently. The average weekly throughput is significantly lower at 1,177 head.

The EYCI serves as a valuable barometer for the cattle market, reflecting both the micro-shifts at a regional level and broader economic influences over time. Understanding its dynamics helps stakeholders make informed decisions in a fluctuating market.