With export and processor buyers in and out of the picture this week, the selective buying phase of the season has kicked into gear. Light, restocker and trade lamb indicators all eased <1% week on week as buyers look to focus on acquiring quality stock to put on feed and avoiding paying premiums for stock that might not quite fit the bill.
NLRS reported weekly
yardings were lower this week, with lamb throughput 36% lower WoW and sheep
throughput 29% WoW, typical of this time of year. In line with fewer buyers at
the rails, the steep decline in supply didn’t lift overall pricing. The Eastern
States Trade Lamb Indicator (ESTLI) tracked sideways to 1040c/kg cwt. The WA trade lamb indicator (WATLI) rose 3¢ to 864¢/kg cwt.
Heavy lamb indicators
(26KG + carcase weight) took a step back as winter maintenance schedules begin
to take place. On the supply side, first
it was numbers, now it’s quality that’s beginning to wane, for export destined
lambs. In saying that, the pick of the yards are continuing to dominate as a
number of saleyard records tumbled this week on a per head basis; $399 lambs at
Dubbo, $428 at Ballarat, $425 at Horsham were new high tide marks. The National
Heavy Lamb indicator eased 32¢ to
1028¢/kg cwt but is still well and truly sitting pretty in the historic range
of pricing.
The National Mutton
Indicator (NMI) eased 4% week on week to 644¢/kg carcase weight despite lower yardings. Similar
to heavy lambs, winter shutdowns are impacting demand, and some recent rainfall
has taken some urgency out of turnoff momentarily. Expectations for this season
were initially for sheep slaughter to decline 20% compared to last year. As
investigated by Jamie–Lee Oldfield on Mecardo this week, sheep slaughter year
to date is tracking just 1% lower
compared to last year (read more here),
which begs the question, how much more turnoff mutton is left to come?
The week ahead….
With processor buyers entering the lull period, this does present difficulty in gauging how concerned exporters are with access to Middle Eastern ports. Indicators will likely ease from the record highs of the last two weeks, but premiums are still well and truly around for the best on-ground stock, which eventually goes to the US and China.
Heavy lambs will still be needed for spring, so market competitiveness will likely shift towards lighter lambs as restockers look to secure the best lambs to put on feed.
Australian sheepmeat exports were lifted in September but remained below year-ago and five-year average volumes on the back of lower domestic slaughter and global trade
The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
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Best on ground premiums as lamb markets enter the bye
NLRS reported weekly yardings were lower this week, with lamb throughput 36% lower WoW and sheep throughput 29% WoW, typical of this time of year. In line with fewer buyers at the rails, the steep decline in supply didn’t lift overall pricing. The Eastern States Trade Lamb Indicator (ESTLI) tracked sideways to 1040c/kg cwt. The WA trade lamb indicator (WATLI) rose 3¢ to 864¢/kg cwt.
Heavy lamb indicators (26KG + carcase weight) took a step back as winter maintenance schedules begin to take place. On the supply side, first it was numbers, now it’s quality that’s beginning to wane, for export destined lambs. In saying that, the pick of the yards are continuing to dominate as a number of saleyard records tumbled this week on a per head basis; $399 lambs at Dubbo, $428 at Ballarat, $425 at Horsham were new high tide marks. The National Heavy Lamb indicator eased 32¢ to 1028¢/kg cwt but is still well and truly sitting pretty in the historic range of pricing.
The National Mutton Indicator (NMI) eased 4% week on week to 644¢/kg carcase weight despite lower yardings. Similar to heavy lambs, winter shutdowns are impacting demand, and some recent rainfall has taken some urgency out of turnoff momentarily. Expectations for this season were initially for sheep slaughter to decline 20% compared to last year. As investigated by Jamie–Lee Oldfield on Mecardo this week, sheep slaughter year to date is tracking just 1% lower compared to last year (read more here), which begs the question, how much more turnoff mutton is left to come?
The week ahead….
With processor buyers entering the lull period, this does present difficulty in gauging how concerned exporters are with access to Middle Eastern ports. Indicators will likely ease from the record highs of the last two weeks, but premiums are still well and truly around for the best on-ground stock, which eventually goes to the US and China.
Heavy lambs will still be needed for spring, so market competitiveness will likely shift towards lighter lambs as restockers look to secure the best lambs to put on feed.
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Data sources: Meat & Livestock Australia; Mecardo
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Exports find support in September
Australian sheepmeat exports were lifted in September but remained below year-ago and five-year average volumes on the back of lower domestic slaughter and global trade
Bounce back in market as lamb supply slows
Sheep and lamb supply fell away again this week prompting a significant boost to the market right across the board. National indicators rose up to
Lessons from weekly slaughter
The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
Holding pattern ahead of the long weekend.
With the impending long weekend in NSW, the market was in a bit of a holding pattern this week, as most of the major indicators
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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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
SERVICES AND CAPABILITIES STATEMENT BROCHURE
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.