Understanding the Impact of MLA's New Online Young Cattle Indicator
Meat & Livestock Australia (MLA) has introduced a pivotal tool in the cattle industry – the Online Young Cattle Indicator (OYCI). This innovation marks a significant advancement in tracking and reporting cattle prices online, mirroring the established Eastern Young Cattle Indicator (EYCI).
Overview of OYCI:
- The OYCI provides a daily price information based on a seven-day rolling average for weaner and yearling heifers and steers weighing between 200-400 kg.
- Unlike the EYCI, which focuses on livestock with muscle/fat scores between C2 and C3, the OYCI includes non-station mated livestock with fat scores from 1 to 5.
Price Trends Comparison:
- Analysis reveals that the OYCI and EYCI have similar trends, with OYCI often at a slight premium
- The OYCI is reported in cents per kilogram of liveweight, which, when adjusted for dressing yield, presents a nuanced comparison to the EYCI's carcass weight basis reporting
Price Spread Analysis:
- The OYCI has ranged from 0 to 100 cents premium compared to the EYCI, averaging nearly 52 cents in the past year.
- Evaluating these indicators on a percentage basis offers a more accurate picture, especially given recent price fluctuations.
Recent Market Trends:
- Recently, the OYCI has shown a quicker price recovery than the EYCI, widening the premium spread significantly.
- As more online market data is incorporated, the OYCI will offer deeper insights into price and spread fluctuations across seasons and cattle cycles
The OYCI is a crucial tool for stakeholders in the cattle industry, offering real-time insights into market trends and pricing. As MLA expands its dataset, the OYCI will become even more instrumental in understanding and predicting market movements, ultimately aiding in better decision-making for vendors and buyers alike.