sheep_033

Lower throughput and some positive rainfall forecasts pushed the sheep and lamb market in the right direction this week, with most sectors experiencing a significant rise. Increased buying support was reported at several yards, as both supermarket and export processors look to secure the lambs they need, at the weight they need, before they run out.

The Eastern States Trade Lamb Indicator was flat week on week despite the headcount for the indicator falling 24%. The top three contributors to the indicator in order were Ballarat, Wagga and Hamilton, supplying 50% of the trade lambs on offer. Both Ballarat and Wagga had some absences noted, without a fully active buying field according to saleyard reports.

The National Mutton Indicator jumped up 9% (26 c/kg) following an 8% rise the week prior, to finish at 303 c/kg. Throughput of the indicator was back 9% on the previous week to a total of 55.3k head. Wagga and Ballarat were again the top two contributors for the indicator and helped pull the price up, averaging 323 c/kg and 322 c/kg respectively. Comparing supply and demand of mutton to historic levels, current mutton prices relative to lamb look about right (Read more here).

The National Restocker Indicator was up 11% (55c/kg) this week ending the selling window at 556¢/kg. Yardings took a tumble of 27% (8.7k head) off the back of recent rain, especially in southern NSW and Central Victoria. The combination of recent rain and the decrease in yardings have both supported the price increase for restocker lambs.

Slaughter held steady last week, but still remains elevated compared to the year prior and to the medium term average. Looking at figure 2, the five year average shows that combined sheep and lamb slaughter declines from here with supply from the paddock easing as we move into the winter months.

Initial yardings data from the NRLS show an overall decrease in yardings for the week of 7% (18.4k head) to 259k head. Lamb yardings were down 13% whilst sheep yardings had an increase of 7%. Similar to the slaughter levels as we summit the middle of May and head for June and July, the 5 year average trend show saleyard throughput declining week on week.

Next week

Our thoughts are with those in the flood-ravaged areas of NSW’s central coast. Further south in NSW, the rainfall has fallen in a kinder fashion and been welcomed, but given its lateness in the season, its impact on the market will be varied. In terms of processing demand, which is expected to continue in its current trend, with contracts out for the second half of July and all of August up to 9.60¢/kg

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Data sources: MLA, Mecardo

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