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 every indicator. Yardings also increased drastically and are still at heightened levels when looking at the medium-term average. Slaughter levels continue to stay elevated as processors try to keep up with demand as the roast season begins.
The Eastern States Trade Lamb Indicator (ESTLI) closed the
week up 2% (14c/kg) on the week prior, reaching 686 c/kg cwt. Yardings more
than doubled on the week before by 113%! Wagga dominated the indicator with the
largest contribution of 27% and the 4th highest average price of 699
c/kg. Corowa had the highest average of all the saleyards for the indicator,
averaging 8% above the indicator at 744 c/kg.
The National Mutton Indicator continued its rebuild back toward
the 300c/kg mark. It finished the selling week up 7% (18 c/kg) to 256 c/kg.
Supply from the paddock was up 57% to a total of 51.8k head. Again, Wagga has
the largest contribution to the indicator after last week when no sale
occurred. The Wagge saleyard report mentioned that not all buyers were present
or participating in the mutton market. Despite this, it averaged 8% above the
indicator at 276 c/kg.
Restocker lamb prices increased 17% (73 c/kg) which pushed
the indicator back over the 500c/kg mark finishing the week at 506c/kg.
Yardings were up 76% to a total of 22.4k head. Muchea in the west has the second-highest
contribution to the indicator regarding headcount, making up 13.6% of the
total. The price however was considerably discounted compared to those on the
east coast. Muchea averaged 290 c/kg for the indicator was 43% below the
indicator and 56% cheaper than Wagga which had the largest volume contribution.
Slaughter figures for last week were down week on week due
to one less day of operation in abattoirs with the ANZAC day public holiday.
Slaughter levels are still operating at elevated levels, with east coast lamb
slaughter for last week up 22% on the 5-year average for that week. Sheep
levels are even higher in a relative sense with the East Coast slaughter volume
up 75% on the 5-year average for the same week.
Next week
A decent amount of rain is forecasted for NSW and all other states and territories expecting light falls in parts. This will be welcome news to growers, especially those with mixed operations sowing a winter crop. Supply which is still at heightened levels compared to the average should start to slow down as the lamb season begins to wind up. This tightening of supply should see finished lamb prices improve.
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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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Buyers are back baby
The Eastern States Trade Lamb Indicator (ESTLI) closed the week up 2% (14c/kg) on the week prior, reaching 686 c/kg cwt. Yardings more than doubled on the week before by 113%! Wagga dominated the indicator with the largest contribution of 27% and the 4th highest average price of 699 c/kg. Corowa had the highest average of all the saleyards for the indicator, averaging 8% above the indicator at 744 c/kg.
The National Mutton Indicator continued its rebuild back toward the 300c/kg mark. It finished the selling week up 7% (18 c/kg) to 256 c/kg. Supply from the paddock was up 57% to a total of 51.8k head. Again, Wagga has the largest contribution to the indicator after last week when no sale occurred. The Wagge saleyard report mentioned that not all buyers were present or participating in the mutton market. Despite this, it averaged 8% above the indicator at 276 c/kg.
Restocker lamb prices increased 17% (73 c/kg) which pushed the indicator back over the 500c/kg mark finishing the week at 506c/kg. Yardings were up 76% to a total of 22.4k head. Muchea in the west has the second-highest contribution to the indicator regarding headcount, making up 13.6% of the total. The price however was considerably discounted compared to those on the east coast. Muchea averaged 290 c/kg for the indicator was 43% below the indicator and 56% cheaper than Wagga which had the largest volume contribution.
Slaughter figures for last week were down week on week due to one less day of operation in abattoirs with the ANZAC day public holiday. Slaughter levels are still operating at elevated levels, with east coast lamb slaughter for last week up 22% on the 5-year average for that week. Sheep levels are even higher in a relative sense with the East Coast slaughter volume up 75% on the 5-year average for the same week.
Next week
A decent amount of rain is forecasted for NSW and all other states and territories expecting light falls in parts. This will be welcome news to growers, especially those with mixed operations sowing a winter crop. Supply which is still at heightened levels compared to the average should start to slow down as the lamb season begins to wind up. This tightening of supply should see finished lamb prices improve.
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Click on graph to expand
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Data sources: MLA, BOM, Refinitiv, Mecardo
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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.