Lambs in grassy paddock

Prices were up across all of the indicators, driven by a tightening of supply with yardings down and strong demand from the buying field. Widespread showers across the nation for the week will continue to fill the moisture profiles of pastures and restocker optimism.

The Eastern States Trade Lamb Indicator was up 3% to just shy of the $8/kg mark closing the week at 795 ¢/kg. Yardings for the trade lambs fell away by 12% to a total of 35.5k head. Wagga and Forbes were the top 2 largest contributors to the indicator, with over 55% of the total yardings between the two selling centres. Wagga was a driving force behind the price rise, having the highest average selling price at an average of 843 ¢/kg, 6% above the indicator.

In the West, the trade lamb indicator increased 9% to 616 ¢/kg following a near doubling in yardings. Saleyard reports from the selling centres mention strong competition despite some absences from the buying field. It’s been 500 days since the WATLI was last above the 600 ¢/kg mark, which would be welcome news to sheep producers following the very sombre news earlier in the week.

The National Mutton Indicator rose 16% this week to close at 394 ¢/kg, again driven by a large decrease in yardings, down 23%. Wagga again topped the largest contribution to the indicator, and Ballarat, which had the 2nd largest contribution had the highest price of 451 ¢/kg, 14% above the average.

The Heavy lamb indicator hit the $8/kg mark this week following a 7% rise in value on the week prior. Yardings for the heavy lambs were down 16% to 25.8k head. At 800 ¢/kg it has surpassed the January peak, which was the end of the price rally from late 2023 when prices rose 78%.

This week’s price increases were helped by a tightening of supply from the paddock. Initial reporting from the NRLS shows that overall lamb and sheep yardings were down week on week by 16%. Compared to the same week last year though, total yardings were still 67% higher.

Slaughter levels remain elevated helping support recent price gains as processors look to keep plants at capacity. Levels for last week were down slightly on the week prior by 5%, and 11% higher year-on-year.     

Next week

Premiums will remain for quality, with buyers competing strongly for well-finished pens. As we continue into winter yardings will ease slightly, following the EOFY surge last week. More rain on the forecast will continue to set up for a strong spring.

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Data sources: MLA, BOM, Mecardo

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