After the big drop in throughput last week yardings rebounded but demand looks to be outpacing supply again as restockers are paying $1 more a kilo this week for lambs.
After a month of decent rainfall but scarce supply saleyards have been on the lookout for more stock. Restockers looking ahead and processors focusing on their shorter term needs. Yardings did in fact improve this week with combined lamb and sheep throughput per the NLRS reaching 256K this week. This was 19% higher week on week but clearly price indicators are revealing that demand is still outpacing supply at the moment. In the context of this winter this level of weekly supply is still lagging behind. It is 7% lower than the weekly average for winter so far this year so a further flush of stock is likely required to stall upward price momentum for the moment.
Per saleyard reports, numbers were up in Wagga, but the weights of lambs presented were on the lighter side leaving restockers and feeders to mop them up. Record lamb prices were reached at Dubbo ($477) where heavier stock were present in the yards. Further south and numbers are still tight and lambs on supplementary feed are attracting the highest interest.
A look at the national indicators and across the board price results were very favourable. The national Heavy Lamb indicator rose 65¢ to 1247¢/kg cwt. Light, merino and trade lambs all averaged 36-49¢ improvements and restocker demand was strong, pushing the indicator up a $1/kg higher week on week to 1062¢/kg cwt. The National Mutton Indicator (NMI) improved 20¢ to 768¢/kg cwt.
This week on Mecardo, Jamie-Lee Oldfield had a look at what potential scenarios there were for further upside in mutton pricing. Mutton indicators have already doubled in the last 12 months and with supply already starting to slip and Q4 supply potentially not as significant due to early turnoff, the scope for upside remains (Read more here).
Next week
Spring is coming, which means lighter lambs are coming. With both light lamb and restocker lamb indicators now over 1000c/kg cwt could we see stock come earlier than expected?
The latest ABARES outlook for livestock products has sheepmeat production dropping for the 2025–26 financial year, pushing prices higher and potentially boosting global demand even
Total sheep and lamb saleyard throughput fell this week, and so did most price indicators, as plenty of supply, proximity to holiday processor shutdowns, and
The October Sheep Producer Intentions Survey (SPIS) provides some very important information regarding the number of lambs on the ground, the type of lambs, and
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Demand still outpacing supply as restockers up the ante
Next week
Spring is coming, which means lighter lambs are coming. With both light lamb and restocker lamb indicators now over 1000c/kg cwt could we see stock come earlier than expected?
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Data sources: MLA, Mecardo
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Production down, but values still to rise
The latest ABARES outlook for livestock products has sheepmeat production dropping for the 2025–26 financial year, pushing prices higher and potentially boosting global demand even
Mutton market maintains momentum
Total sheep and lamb saleyard throughput fell this week, and so did most price indicators, as plenty of supply, proximity to holiday processor shutdowns, and
Survey marking numbers counter high slaughter rates
The October Sheep Producer Intentions Survey (SPIS) provides some very important information regarding the number of lambs on the ground, the type of lambs, and
Lighter lambs dominate supply as prices decline
Supply crept higher this week to 392k head for lamb and sheep through to the yards, and prices retracted as harvest in the south and
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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.
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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.