It reports that the Eastern Young Cattle Indicator (EYCI) fell 7.25¢/kg on last week to settle at 294.25¢/kg (carcase weight), the lowest level since November 2007 and 10 per cent below the corresponding period last year.

MLA says the ongoing heat across the eastern states, combined with a general lack of rain, has been the major driving force behind the weakening indicator price.

The dry season has consequently encouraged 16pc more EYCI classified cattle onto the market in November, year-on-year.

The rise in numbers has been predominantly driven by an influx of plainer unfinished lines, reflecting the current feed shortage.

MLA says a lack of water is also starting to become a major concern, as several producers are forced to offload, and are consequently unable to restock until some good runoff occurs to fill dams and waterways.

Such implications have resulted in a reduction in restocker activity and weaker demand for young cattle as prices continue to fall.

The current value of the Aussie dollar also continues to cause significant concern for the processing sector, as demand remains subdued.

At the close of Wednesday markets, the trade steer indicator slipped 5¢ to 159¢/kg while, feeder steers fell 4¢ to close at 158¢/kg.

Japan ox eased 3¢, to 156¢, and US cows finished 1¢ cheaper at 116¢/kg.