Sheep producers are making way for the winter crop and getting ahead of the upcoming public holiday sales disruption. Close to 250,000 lambs flooded to saleyards across the country this week which was a huge jump of almost an extra 100k on the previous week.
Anzac Day will be commemorated on the 25th of
April which this year falls on a Thursday. The National holiday will take a
number of sales off the roster, including the major market of Wagga. It’s also
a disruption for southern Mallee numbers by taking out many fortnightly
cyclical markets including Ouyen and Swan Hill.
Even with the early break that occurred in the first week of
April, additional numbers have already started to flood to centres in
preparation. As a result, we expect that the next two weeks will see an influx
of numbers. To compensate this week, Wagga was loaded up with 45,000 lambs and 19,000
sheep, knowing full well that there would be no market in a fortnight. Despite
the rain event and confidence in the season ahead, numbers will be strong right
through April which will put a lid on price improvements until supply clears
out into Winter.
The Eastern States Trade Lamb Indicator (ESTLI) slipped 3¢
over the week to settle at 646¢/kg cwt. This is 8% or 58¢ lower than the same
time last year. In WA, the lamb market played catchup following the upward
momentum in the east last week. WA trade lamb prices rallied 62¢ in saleyards
to 504¢/kg cwt.
Heavy lamb prices have also levelled off again, this week
sliding 9¢ to 655¢/kg cwt with competition noted as inconsistent and prices
fluctuating from reports at key yards. Restocker lambs also came under supply
pressure after the rain-driven rally in the prior week. The National Restocker
Lamb Indicator dropped 50¢ to 553¢/kg cwt which is 66¢ under year-ago
levels.
The volatility in the mutton market remains a significant
challenge. This week mutton prices dropped 12¢ to 275¢/kg cwt which in the
context of the volatility experienced so far this year is relatively steady.
The National Mutton Indicator is 128¢ lower year on year.
Next week
Forward pricing being offered for May, June and July are anywhere between $7.20 and $7.80/kg cwt under the expectation of a traditional tightening of supply into winter. Even with the price improvements in the last few weeks, it’s still well ahead of where the physical market sits today. Considering the May to July period last year fetched average trade lamb prices at $5.70, the prices that can be guaranteed for this winter are a real positive.
The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
Australian sheep and lamb exports increased in September but remained subdued in relation to recent trends. The US took dominant market share for the month,
The sheep and lamb market showed some resilience this week as yardings backed off slightly but remained at their second-highest level since June. Merino lambs
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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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Disruption ahead so supply shuffles forward
Anzac Day will be commemorated on the 25th of April which this year falls on a Thursday. The National holiday will take a number of sales off the roster, including the major market of Wagga. It’s also a disruption for southern Mallee numbers by taking out many fortnightly cyclical markets including Ouyen and Swan Hill.
Even with the early break that occurred in the first week of April, additional numbers have already started to flood to centres in preparation. As a result, we expect that the next two weeks will see an influx of numbers. To compensate this week, Wagga was loaded up with 45,000 lambs and 19,000 sheep, knowing full well that there would be no market in a fortnight. Despite the rain event and confidence in the season ahead, numbers will be strong right through April which will put a lid on price improvements until supply clears out into Winter.
The Eastern States Trade Lamb Indicator (ESTLI) slipped 3¢ over the week to settle at 646¢/kg cwt. This is 8% or 58¢ lower than the same time last year. In WA, the lamb market played catchup following the upward momentum in the east last week. WA trade lamb prices rallied 62¢ in saleyards to 504¢/kg cwt.
Heavy lamb prices have also levelled off again, this week sliding 9¢ to 655¢/kg cwt with competition noted as inconsistent and prices fluctuating from reports at key yards. Restocker lambs also came under supply pressure after the rain-driven rally in the prior week. The National Restocker Lamb Indicator dropped 50¢ to 553¢/kg cwt which is 66¢ under year-ago levels.
The volatility in the mutton market remains a significant challenge. This week mutton prices dropped 12¢ to 275¢/kg cwt which in the context of the volatility experienced so far this year is relatively steady. The National Mutton Indicator is 128¢ lower year on year.
Next week
Forward pricing being offered for May, June and July are anywhere between $7.20 and $7.80/kg cwt under the expectation of a traditional tightening of supply into winter. Even with the price improvements in the last few weeks, it’s still well ahead of where the physical market sits today. Considering the May to July period last year fetched average trade lamb prices at $5.70, the prices that can be guaranteed for this winter are a real positive.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Mecardo
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Taking a punt on merino lambs?
The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
Market kicks as quality starts to arrive
The story of supply has been driving the market since Winter, and demand has been reactive. Last week, there was movement at the station when
FTA fuels UK sheepmeat market
Australian sheep and lamb exports increased in September but remained subdued in relation to recent trends. The US took dominant market share for the month,
NSW leads sheep and lamb demand
The sheep and lamb market showed some resilience this week as yardings backed off slightly but remained at their second-highest level since June. Merino lambs
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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.