The new restrictions on meat processing in Victoria came into effect last Friday, and the race was on to get animals through before the deadline. The solid jump in supply, was no doubt part of the reason for last weeks market whitewash. However, on the surface, this week’s market appeared more stable.
Lamb throughput was higher on the east coast for the week ending the 7th of August (Table 1), which offset lower sheep yardings. NSW yards picked up more new season lambs, and this saw nearly an extra 15k lambs present compared to the week earlier.
The biggest lift was in Victoria, which saw a combined lamb and sheep yarding of 34,436 head. This was more than double the numbers of the week earlier and on par with the five-year weekly average levels in August.
Slaughter numbers are what we’re watching with interest. Combined east coast ovine slaughter was slightly higher than the week earlier as a 3% lift in lambs processed took up space of 12% fewer sheep. In Victoria 136,736 lambs made it to slaughter; a considerable lift on the week prior but still 10% under the five-year average for this time of year.
The Eastern States Trade Lamb Indicator lost 13¢ or 2% to 690¢/kg cwt. Heavy lambs also ended the week lower, losing another 10¢. The significant rainfall event over much of the country gave Restockers another boost of confidence, the National Restocker Lamb indicator was the best performer of the categories this week, gaining 83¢ to 716¢/kg cwt.
In Western Australia the grass was much greener so to speak. The Western Australian Trade Lamb Indicator, currently sitting at an admirable 755¢/kg cwt after a rise of 109¢ on last week.
There was little movement in the National Mutton Indicator this week, it ended at 530¢/kg cwt on Thursday.
Next week
Uncertainty is the theme of lamb and sheep markets at the moment. We will all have eyes on how the new processing restrictions have impacted this week’s Victorian slaughter numbers, when they get released next week. While it may take a couple of weeks to fully adjust schedules, it will provide an indication of where capacity will sit until the end of September. With border issues still causing confusion and the announcement that JBS are closing their Brooklyn facility indefinitely, there are still many challenges for the market to adjust to.
Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
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.
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.
Dash to the slaughter before the clock struck midnight
Lamb throughput was higher on the east coast for the week ending the 7th of August (Table 1), which offset lower sheep yardings. NSW yards picked up more new season lambs, and this saw nearly an extra 15k lambs present compared to the week earlier.
The biggest lift was in Victoria, which saw a combined lamb and sheep yarding of 34,436 head. This was more than double the numbers of the week earlier and on par with the five-year weekly average levels in August.
Slaughter numbers are what we’re watching with interest. Combined east coast ovine slaughter was slightly higher than the week earlier as a 3% lift in lambs processed took up space of 12% fewer sheep. In Victoria 136,736 lambs made it to slaughter; a considerable lift on the week prior but still 10% under the five-year average for this time of year.
The Eastern States Trade Lamb Indicator lost 13¢ or 2% to 690¢/kg cwt. Heavy lambs also ended the week lower, losing another 10¢. The significant rainfall event over much of the country gave Restockers another boost of confidence, the National Restocker Lamb indicator was the best performer of the categories this week, gaining 83¢ to 716¢/kg cwt.
In Western Australia the grass was much greener so to speak. The Western Australian Trade Lamb Indicator, currently sitting at an admirable 755¢/kg cwt after a rise of 109¢ on last week.
There was little movement in the National Mutton Indicator this week, it ended at 530¢/kg cwt on Thursday.
Next week
Uncertainty is the theme of lamb and sheep markets at the moment. We will all have eyes on how the new processing restrictions have impacted this week’s Victorian slaughter numbers, when they get released next week. While it may take a couple of weeks to fully adjust schedules, it will provide an indication of where capacity will sit until the end of September. With border issues still causing confusion and the announcement that JBS are closing their Brooklyn facility indefinitely, there are still many challenges for the market to adjust to.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
Categories
Have any questions or comments?
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
Sheep meat price volatility
The drop in sheep meat prices in 2023 came as an unwelcome shock after the better part of a decade of rising prices. This article
Light lambs grounded
Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
US lamb demand stronger
The US has held the mantle as our largest market for lamb exports since lambs got very expensive back in 2020. As a single destination,
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.
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.