IT'S onward and upward for the Australian cattle market, after hitting the highest price since 1996.

The Eastern Young Cattle Indicator hit a record of 709c/kg carcase dressed weight at the Roma Saleyards on Tuesday, smashing the previous record of 600c/kg from seven months ago.

The price is the highest the market has reached since the establisment of the EYCI in 1996.

Meat and Livestock Australia's (MLA) Manager of Market Information Ben Thomas said widespread rain across the eastern states, combined with the national cattle herd sitting at a 20-year low, had pushed the EYCI into previously uncharted territory.

"As outlined in the recently released MLA July cattle industry projections, restockers have been the driving force behind the EYCI bolting through the 600s during June and July,” Mr Thomas said.

"Restockers accounted for 41 per cent of EYCI-eligible purchases in July, up from 34 per cent in the same month last year.”

Auctioneer with GDL Roma Geoff Maslen said the record was a good indication of how the market was travelling for the year.

"It's great news for the vendors who have struggled with drought for the last few years. The market is going in the right direction for them,” Mr Maslen said.

"This year the cattle averaged $1718 - that's $1000 more than what they got for the same type last year. It's good money for farmers.”

The EYCI is regarded as the benchmark for cattle prices across Australia, which averages the numbers based on cattle purchased for slaughter, restocking or lotfeeding.