The divide between old and new season lambs remains a prominent feature of the market. This week old season lambs presented in mixed quality which caused wide variation in price, while new season offerings are in good condition and attracting stronger bidding competition. Lamb and mutton price indicators all sprung higher over the week.
The Eastern States Trade Lamb Indicator (ESTLI) lifted 53¢ over the week, to 727¢/kg cwt. Despite the big jump in price, it didn’t make up for the significant fall of the week prior. In the West, trade lambs inched just 4¢ higher over the week to 538¢. While trade lambs in WA are fetching stronger prices than last month, we are still looking at prices more than 200¢ cheaper than this time last year.
Light lambs gained momentum over the week with the national indicator picking up 60¢ from last week to sit at 589¢/kg cwt. Similarly Merino lambs improved 61¢ to 593¢/kg cwt. Bigger yardings of heavy lambs also sold into stronger competition with the National Heavy Lamb Indicator lifting 39¢ to 746¢/kg cwt. The average heavy lamb price topped in Deniliquin yards at 803¢.
Much like the lamb market, price volatility has consumed mutton prices over the last month. This week the National Mutton Indicator (NMI)gained 61¢ to sit at 521¢/kg cwt. Both the ESTLI and NMI are sitting 22% below the same time last year.
Lamb slaughter remained very strong last week with 360,032 head processed. In the last four reported weeks we’ve seen 10% more lambs processed than the same time last year. Sheep slaughter rates are continuing to rise from the winter low. Last week the total number of sheep processed jumped 40% but remains well below the seasonal average.
While slaughter numbers for lambs are holding strong, saleyard throughput tapered off last week with wet conditions in many parts of the east and the softer market impacting confidence.
The week ahead….
On the surface saleyard prices look weak, however demand for new season lambs is proving strong. The low Aussie dollar is positive for demand from our export customers and will be a supporting factor for the finished lamb market through spring.
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
A short week, and closed saleyards on Thursday has culminated in some relief on the supply front as combined lamb and sheep yardings nationally dropped
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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.
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.
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.
A spring loaded lamb market
The Eastern States Trade Lamb Indicator (ESTLI) lifted 53¢ over the week, to 727¢/kg cwt. Despite the big jump in price, it didn’t make up for the significant fall of the week prior. In the West, trade lambs inched just 4¢ higher over the week to 538¢. While trade lambs in WA are fetching stronger prices than last month, we are still looking at prices more than 200¢ cheaper than this time last year.
Light lambs gained momentum over the week with the national indicator picking up 60¢ from last week to sit at 589¢/kg cwt. Similarly Merino lambs improved 61¢ to 593¢/kg cwt. Bigger yardings of heavy lambs also sold into stronger competition with the National Heavy Lamb Indicator lifting 39¢ to 746¢/kg cwt. The average heavy lamb price topped in Deniliquin yards at 803¢.
Much like the lamb market, price volatility has consumed mutton prices over the last month. This week the National Mutton Indicator (NMI)gained 61¢ to sit at 521¢/kg cwt. Both the ESTLI and NMI are sitting 22% below the same time last year.
Lamb slaughter remained very strong last week with 360,032 head processed. In the last four reported weeks we’ve seen 10% more lambs processed than the same time last year. Sheep slaughter rates are continuing to rise from the winter low. Last week the total number of sheep processed jumped 40% but remains well below the seasonal average.
While slaughter numbers for lambs are holding strong, saleyard throughput tapered off last week with wet conditions in many parts of the east and the softer market impacting confidence.
The week ahead….
On the surface saleyard prices look weak, however demand for new season lambs is proving strong. The low Aussie dollar is positive for demand from our export customers and will be a supporting factor for the finished lamb market through spring.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, NLRS, Mecardo
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Have any questions or comments?
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
International sheep meat supply and lamb prices
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
44% drop in supply springs market into action
A short week, and closed saleyards on Thursday has culminated in some relief on the supply front as combined lamb and sheep yardings nationally dropped
Winter is coming, where will lamb land?
While many are focussed on the Anzac Day market of a good autumn break, and whether more rain – or any rain at all for
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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.