Recent good storms and the hope of more rain has driven Australia's major indicator of cattle prices to 597.75 cents a kilogram, a new record.

Driven by drought in Queensland, parts of New South Wales, Victoria and South Australia, slaughter numbers have been declining as cattle herds shrink.

On Thursday, prices jumped at two key eastern markets, Dalby, in south east Queensland, and Casino, in north east New South Wales.

Prices for Eastern Young Cattle Indicator (EYCI) eligible cattle at Dalby increased by 11 cents, averaging over 602 cents a kilogram.

In Casino, prices jumped 37 cents, averaging approximately 580 cents a kilogram. Listen Duration: 4 minutes 57 seconds 4 m 57 s Listen Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. MLA's Ben Thomas and Roma grazier James Stinson discuss recent highs in the cattle market. ( Clint Jasper ) Download 2.3 MB

Meat and Livestock Australia's Ben Thomas told ABC Rural in September he expected the ECYI to hit 600 cents, a forecast he maintains.

"We're getting very close to it, and individual markets are averaging above 600 cents, for example Roma and Dalby.

"I wouldn't be surprised if the indicator went above 600 cents, but regardless, the cattle market is still seeing exceptionally good prices at the moment."

Mr Thomas said even as dry weather stretched on, numbers entering saleyards were still higher than in previous years.

Eastern Young Cattle Indicator, 3 December 2015

The seven-day rolling average reveals over 20,000 head of cattle are included in the EYCI's calculation.

"In previous years it's only been around 15,000 to 17,000 head, so there are still a large number of cattle on the market, and that's only going to contract quite significantly and quite quickly if we do get some good, widespread rain.

Roma grazier and local saleyard board member, James Stinson, said high prices were also driving up optimism in the industry, but some in the industry were becoming nervous about being able to secure adequate numbers of cattle coming into the wet season.

He said the direction prices head after sales resume in 2016 will depend entirely on rain in drought affected areas.

"I can't see the market going too much higher unless there's rain in the breeder country in northern regions.

"The meat and feeders markets seem to have found their level, so producers need to be wary prices won't spiral out of control."