Is it liquidation time?

Market Morsel

The Australian Bureau of Statistics livestock slaughter data was released today for the June quarter 2023. It shows the female slaughter ratio (FSR) for cattle has breached the 47% tipping point between herd rebuild and herd liquidation.

The FSR for the June quarter came in at 48%, which is the highest it has been since quarter four of 2020 and signals that we maybe in herd liquidation now. This increase to the FSR over the June quarter brings the annual average FSR for 2023 to 45.2%, so on an annual basis we aren’t quite at liquidation phase, yet…