Cattle prices slump to nearly decade lows before dry summer

The news: Australian cattle prices have tanked to nine-year lows after the driest September on record and as a looming El Niño summer pushes farmers to sell and even cull stock, Bloomberg reports.

The numbers: The Eastern Young Cattle Indicator (EYCI), a seven-day rolling average of young cattle prices in eastern states, has fallen almost 60% in 2023, hitting its lowest level this week since December 2014. Cattle prices have fallen from $1.04/kg to $0.38/kg since the same time last year. Lamb prices have fallen 41% over the same period to $0.43/kg, according to government figures. In July 2021, the EYCI hit $10/kg for the first time in its history and was as high as $12.22/kg in May 2022.

The context: Australian livestock numbers have swelled to their highest figures in a decade after three years of the wetter La Nina weather system bolstered pastures, boosting cattle demand as famers restocked their farms with extra livestock.