Brought to you by AG Concepts

Term or abbreviation



Simultaneous purchase and sale of two different futures contracts (or a combination of cash and futures) to take advantage of perceived mispricing.  In a pure arbitrage, mispricing is locked in and a risk-free profit made through the trades


Difference between the price of a physical commodity and the price of the underlying derivative (eg futures) contract

Basis risk

The risk that basis moves in an unexpected manner

Carcase weight

See Hot Standard Carcase Weight


Cost, Insurance, Freight – the quoted price for the goods including freight and insurance costs delivered to final destination.


Chemical lean


Cost of Production


The degree to which two data series vary together


Carcase weight.  Also called ‘Hot Standard Carcase Weight’ or ‘HSCW’

Dressed weight

Same as carcass weight


Dressed weight

Eastern Market Indicator

Primary market indicator for the Australian wool market. Comprised of a basket of 128 different wool types, and expressed in ¢/kg clean. Published after each wool sale

Eastern States Trade Lamb Indicator

Seven-day weighted average price of trade lamb prices recorded at NLRS-reported saleyards in Queensland, New South Wales, Victoria, Tasmania and South Australia. Published daily

Eastern Young Cattle Indicator

Seven-day weighted average price of vealer and yearling heifers and steers, with a muscle / fat score of C2 or C3, and liveweight greater than 200kg, from 26 saleyards across Queensland, New South Wales and Victoria. Published daily


Eastern Market Indicator


Eastern States Trade Lamb Indicator


Eastern Young Cattle Indicator


Free alongside ship – refers to export price quotes where the seller is obliged to pay warehouse services, packing, inland freight and port charges, but not placement of goods onto the ship. The buyer is obliged to pay overseas freight, charges in foreign port, customs duties, quarantine and delivery to final destination. Also referred to as FOB, or ‘free on board’

Feeder Cattle futures contract (listed on Chicago Mercantile Exchange)

50,000 lbs of 650-849 pound steers, Medium-Large #1 and Medium-Large #1-2. The CME feeder cattle contract is priced in USc/lb and is a cash-settled contract.


Once cattle reach market specifications and are ready for processing, they are described as ‘finished’ – can be either grassfed or grainfed

First cross lamb

Lamb obtained from the mating of a british breed ram (eg Border Leicester) and Merino ewe


Free on board – see FAS

Grade score

The combination of fat and muscle scores used in assisting the quality of an animal.


Hot Standard Carcass Weight

Hot Standard Carcase Weight

The standard AUS-MEAT definition of the weight of a carcase with hide, feet, tail, head and innards removed, taken within two hours of slaughter

Live Cattle futures contract (listed on Chicago Mercantile Exchange)

40,000lbs of 55% choice, 45% select, Yield Grade 3 live steers (or live heifers, effective with the August 2015 contract). The CME live cattle contract is priced in USc/lb and is settled by physical delivery.


The weight of an animal before slaughter



Micron Price Guide

Sub-indicators for the Australian wool market, focusing on individual micron specifications.


Meat & Livestock Australia

Muscle score

Used to describe the muscularity of cattle. For NLRS reporting, there are five categories – A (very heavy); B (heavy); C (medium); D (moderate); and E (light).

National Livestock Reporting Service

MLA’s market reporting service, that provides an independent source of livestock market data, collected directly from major prime and store markets, direct sales and wholesale meat markets.  In addition, the NLRS provides weekly summaries, skin and hide prices and slaughter information


National Livestock Reporting Service


Over the hooks – where livestock are sold directly to the abattoir


The value of a variable below which a certain percent of observations fall. For example, the 20th percentile is the value below which 20% of the observations may be found.

Second cross lamb

Lamb obtained from the mating of a meat breed ram with a first-cross ewe

Shipped weight

The weight of a shipment of meat


The price difference between two physical market prices or indicators, or the difference between financial products


Shipped weight


 Number of stock offered for sale at a saleyard auction




Mecardo information is provided to assist in your marketing decisions. It contains a range of data and views on the current market. It is not intended to constitute advice for a specific purpose. Before taking any action in relation to information contained within this report, you should seek advice from a qualified professional. The information is obtained from a variety of sources and neither Mecardo nor Ag Concepts Advisory will be held liable for any loss or damage whatsoever that may arise from the use of information or for any error or mis-statement contained in this report. 


Sign up for a FREE BASIC SUBSCRIPTION now to read this article.

Mecardo will send you its latest market analysis outlook delivered to your Inbox as it's published.  You will also receive one month Premium access for free.

You tell us what information you want to hear about, so you'll only be alerted to information that is relevant to you.

Learn more about Mecardo Sign Up Now!