Back to the paddock demand lifts light lambs

Sheep in a race

There was a clear divide between buying types this week, as most indicators remained fully firm to higher with the exception of heavy lambs and mutton, as the short week in some states saw sheep supply lighten off and processors seemingly take their foot ever so slightly off the gas. Restockers, however, haven’t gone into hibernation just yet.

More than 40,000 less sheep being yarded and 16,000 head less eligible for the National Mutton Indicator didn’t stop the price dropping by about 6¢/kg to 771¢/kg, with this week being the first time the NMI average per head equation has fallen below $200 since early February. Despite the public holiday on Monday, NSW still offered more than half of the NMI eligible sheep and averaged well above the national price at 796¢/kg. Victoria was also higher, at 779¢/kg, while WA was the only other state with any numbers and brought the price back, averaging 710¢/kg.

The sheep yarding was more than 40% lower than last week and more than 50% lower year-on-year, albeit there was no public holiday in the corresponding week in 2025. Slaughter last week did rise back up by 19% from the week prior but was still only marginally higher year-on-year, with last year’s equivalent week again only being four days.

Light lambs kicked significantly, jumping more than 40¢/kg for the week to 1127¢/kg, despite having one of the smaller declines in throughput of all the major indicators. Restocker lambs also had a lift, picking up 8¢/kg. Forbes, NSW, had 30% of all light lambs and 18% of restockers, and the National Livestock Reporting Service quotes restocker buyers as very strong, with lambs back to the paddock selling from $200 to $278/head.

Wagga Wagga, NSW, had the biggest offering of restocker lambs, with 25% of the throughput or more than 8000 head, and averaged 1217¢/kg, compared to a national price of 1169¢/kg. The buying breakdown shows feeders as the dominant restocker category buyers at Wagga, where they paid 44¢/kg more than last week, and an 18¢/kg premium over restockers.  The Eastern State Trade Lamb Indicator was up to 190¢/kg, with the national price at 1184¢/kg. In keeping with the trends of the week, it was the lightest category of trade lambs (20-22kg) which picked up the most momentum and averaged the highest price, at 1220¢/kg, 67¢/kg higher week-on-week.

Next week

We should get a good indication of end-of-season supply and demand this month, as we leave public holidays behind and we are still far out enough from mid-winter to yet see much of an impact of processor slow or shut downs. We are unlikely to see any change in the global landscape in the short term, but significant rainfall in the south could further ramp up restocking.

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Data sources: MLA, Mecardo

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