Widespread winter rain across eastern Australia has helped the country's key cattle price index surge to a new high.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 6 minutes 7 seconds 6 m MLA's Ben Thomas says EYCI is likely to stay above 600c/kg over winter ( Craig Zonca ) Download 2.8 MB

The Eastern Young Cattle Indicator (EYCI) has jumped significantly over the past fortnight, to reach 634 cents per kilogram carcase weight.

Meat and Livestock Australia's manager of market information Ben Thomas predicted the strong prices to be maintained as supply continues to tighten.

"The number of cattle coming through has really come back," he said.

"The expectation is for it to stay above 600 cents for winter."

The EYCI has risen more than 60 cents in the past month, with producers looking to re-stock after recent rain driving the price increases.

"For those that have the stock to sell, that is great news and would put a smile on all those faces," Mr Thomas said.

"But of course, there's the other side of the coin too and there are those unfortunate producers who had to offload cattle a couple of years ago."

The EYCI has more than doubled from its low of 278c/kg in May 2013.

"Looking to re-enter the market in these conditions, it certainly would be somewhat daunting," Mr Thomas said.

The EYCI is a benchmark for prices of vealer and yearling heifers and steers, from saleyards in Queensland, New South Wales and Victoria.

Current high still down on records of the 1970s

Widespread drought in Queensland had resulted in a substantial level of turn-off in recent years, with the national herd dropping to 26 million head this year, its lowest level in more than two decades.

While the current price level was a record for the EYCI, which dates back to 1996, it remained below the spike of the 1970s beef boom.

"The record high was back in the mid-70s where the equivalent indicator was at approximately 700 cents [per kilogram]," Mr Thomas said.

"We are getting up into those realms."

But he sounded a word of caution, particularly given international market conditions that are putting a squeeze on Australian processors.

"We've really got to keep in mind what's happening in some of our other markets," Mr Thomas said.

"Over in the United States, the exact opposite thing is happening at the moment — the indicators are all back about 20 per cent from where they were last year."