Restockers and trade lambs in the West both had double-digit gains in value this week, all other categories were relatively flat. Total yardings were similar to last week, but there was a shuffle between types, most notably restocker lambs had a 38% increase in yardings. New season lambs continue to build their share of volume as more fill saleyard pens.

The Eastern States Trade Lamb Indicator was down 2% to 809 c/kg with strong downward pressure on price thanks to an increase in yardings of 11%. Wagga had the largest contribution to the indicator in regard to volume and averaged 839 c/kg. Its saleyard report mentions a bigger buying field, helping support strong demand.

In the West, trade lambs jumped 10% in value to over 700 c/kg, closing the selling week at 713 c/kg, a 12% discount to their East Coast companion. This was thanks to a large decrease in supply, especially Muchea which overall saw a 39% decrease in total yardings after a surge last week.

Restockers took charge of the biggest movements as yardings as mentioned above increased 38%. The downward pressure from supply didn’t impact prices from lifting 23%, closing the selling week at 635 c/kg. This is over double the value compared to last year. The large increase was thanks to Wagga, which not only had the highest throughput of restocker lambs at 25% but also averaged 23% above the National indicator regarding value.

New season lambs are building their presence at the saleyards. Whilst there is no indicator to track the value and throughput of the new season offerings, multiple saleyards include them in their reports. Wagga said there were 6.6k head of new season lambs and the bulk averaged 860 – 880 c/kg. Forbes saw 6.3k head of new season lambs with the new ones making trade weight averaging $185-$210/head. Bendigo mentioned its first sighting of new season lambs with about 1000 penned, they averaged from 900-950 c/kg.

Total slaughter levels for the week ending the 9th of August were down week-on-week by 7%, mainly due to a 50% decrease in lamb slaughter from SA. Despite the decrease, the level of slaughter remains elevated, which is helping support and handle the higher levels of supply. 

Next week

More and more new season lambs will continue to enter the market as they hit the producers desired weight range. Competition from the buying field should remain strong for new lambs, but as the supply increases to a threshold this will place downward pressure on prices.

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Data sources: MLA, Mecardo

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