Mecardo analyst, Nick Symon, said supply was tighter, with yardings slightly down compared to last year as saleyards re-open in 2024, but still relatively strong.

He said preliminary data from the Meat & Livestock Australia (MLA) shows a total yarding of 25,606 head last week, which is nine per cent down on the second week of January 2023. However, considering last month's yardings were 120 per cent above those in December 2022, Symon said it shows there is still strong supply from paddocks around the country.

After a wet December, demand was supported by further rainfall on the East Coast, according to Symon, who said this continues to drive confidence.

"The East Coast had a very wet start to the year, continuing from high December totals," he said.

"Parts of Victoria flooded and received monthly averages or more in 24 hours.

"This helped lift cattle prices as feed concerns through the drier summer months continue to erode, and overall confidence in the market continues to rise."

Symon reported the Eastern Young Cattle Indicator (ECYI) built on its price climb in December to finish last week at 589 cents per kilogram carcase weight (cwt).

"Supply was down three per cent on this time last year with 7630 head moving through the yards (not everyone has returned from the break)," he said.

Processor cows trended the same as the ECYI, up three per cent on price highs of December to finish the week at 227 c/kg live weight (lwt). Meanwhile the Western Young Cattle Indicator also opened the year higher than when it closed last year, finishing the week at 499 c/kg cwt up 12 per cent (50c/kg) on this time last month. 

Symon said confidence in the market and demand fundamentals could lead to further price rises in the short term.