Supply pulled back significantly this week, likely in response to last week’s cheaper market. After the excitement of a rising market, it appears to be searching for its new level which should reveal in the weeks ahead.
The Eastern States Trade Lamb Indicator (ESTLI) on Thursday is
up 9¢ compared to the close of last week. At the time of writing, it is sitting
at 713¢/kg cwt, which is 6% below the five-year average for the ESTLI. Minor
movements were made in trade lamb prices in the West, with the indictor down 5¢
to 557¢/kg cwt. It will be interesting to see how finished lamb prices perform after
the holiday, once the fuel of the lamb campaigns wares off.
Heavy lambs also found some momentum on the tighter supply,
gaining 26¢ since last weeks close to 738¢/kg cwt. Wagga reported noted that
although competition for heavy lambs remained robust, buyers were cautious
about exceeding 700¢.
The lighter weight categories didn’t manage to hold their
ground. The National Restocker Lamb Indicator is currently sitting at 591¢/kg
cwt which is 38¢ lower than last Friday. NLRS reports at Ballarat mentioned the
number of lambs almost halved in this week’s sale, which spurred on stronger bidding
there. However cheaper restocker values in Muchea and Forbes in particular
dragged down the National Indicator.
Merino lamb values made the largest gains this week. The
National Merino Lamb Indicator at 602¢/kg cwt lifted 61¢ or 11% since last Friday.
This is only just below the high of 611¢ reached a fortnight ago.
Despite tighter saleyard throughput, mutton prices also slipped
some of last week’s gains. The National Mutton Indicator sitting at 273¢/kg cwt
is 14¢ lower than last Friday.
As highlighted in this week’s analysis, slaughter rates tell us that processors have been able to lift their capacity. This can only be a good thing for price, especially if supply tightness is ahead.
Lower throughput for lambs indicates the approach of winter. Whilst lamb indicators were lower, mutton markets found some favour this week, improving week on week
The mutton market has held fairly steady throughout the autumn, but it hasn’t experienced the same rebound as lamb in recent weeks. The national mutton
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In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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Swings in supply disrupt the balance
The Eastern States Trade Lamb Indicator (ESTLI) on Thursday is up 9¢ compared to the close of last week. At the time of writing, it is sitting at 713¢/kg cwt, which is 6% below the five-year average for the ESTLI. Minor movements were made in trade lamb prices in the West, with the indictor down 5¢ to 557¢/kg cwt. It will be interesting to see how finished lamb prices perform after the holiday, once the fuel of the lamb campaigns wares off.
Heavy lambs also found some momentum on the tighter supply, gaining 26¢ since last weeks close to 738¢/kg cwt. Wagga reported noted that although competition for heavy lambs remained robust, buyers were cautious about exceeding 700¢.
The lighter weight categories didn’t manage to hold their ground. The National Restocker Lamb Indicator is currently sitting at 591¢/kg cwt which is 38¢ lower than last Friday. NLRS reports at Ballarat mentioned the number of lambs almost halved in this week’s sale, which spurred on stronger bidding there. However cheaper restocker values in Muchea and Forbes in particular dragged down the National Indicator.
Merino lamb values made the largest gains this week. The National Merino Lamb Indicator at 602¢/kg cwt lifted 61¢ or 11% since last Friday. This is only just below the high of 611¢ reached a fortnight ago.
Despite tighter saleyard throughput, mutton prices also slipped some of last week’s gains. The National Mutton Indicator sitting at 273¢/kg cwt is 14¢ lower than last Friday.
Click on graph to expand
Click on graph to expand
Data sources: MLA | Mecardo
Categories
Winter lamb cool down
Lower throughput for lambs indicates the approach of winter. Whilst lamb indicators were lower, mutton markets found some favour this week, improving week on week
Mutton market still out of step
The mutton market has held fairly steady throughout the autumn, but it hasn’t experienced the same rebound as lamb in recent weeks. The national mutton
Buyers are back baby
The lamb and sheep markets were back in full swing following last week’s shorter selling week. Most notable were the buyers, pushing prices up across
How do the size of yardings move prices in Wagga
Talk to any farmer or local agent, and they will tell you that local supply has an impact on local prices. Many a grower will
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Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published
Listen to the podcast
Join the Mecardo team for the Commodity Conversations podcast, where we provide short weekly market recaps and longer conversations with guests to discuss the drivers and trends in livestock, grain and fibre markets.
Research: Analysis of the Australian sheep flock
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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We don’t just bring you the most up to date market insights. Find out more about Mecardo’s services including risk management advisory, modelling, benchmarking, research & consultancy.