Prices lifted sharply this selling week, with multiple categories making double-digit percentage gains on the week prior. Northern buyers took over their southern counterparts, who had led the market in recent weeks as the more dominant buying group. Rain fell in the Eastern lower third of the nation which helped bring some restockers back to the rail, supporting prices.
The Eastern States Trade Lamb Indicator( ESTLI) rose by 4%
in value to finish the week at 833¢/kg. Yardings for the indicator also rose by 11% week on week indicating a large shift in demand. A growing share of high-quality new season lambs has helped with the demand spike as buyers looked to fill orders. Wagga topped the list for the largest contribution, with 28% of the trade lamb volume moving through the pens. Wagga averaged a 4% premium in value to the ESTLI and its saleyard report puts that down to “fierce” competition amongst the export buyers.
Despite an 8% lift in prices, the National Mutton Indicator just couldn’t quite crack the $3/kg waterline, closing the week 1 cent shy at 299¢/kg. Yardings skyrocketed by 39% on the week prior. Supply of mutton through the saleyard YTD has been running at high levels, with inflated levels of slaughter, as reported here. Wagga and Ballarat were the largest contributors in regard to volume, and both had a 4% premium on average value.
The National Light Lamb Indicator had the largest rise in value for all indicators week on week, climbing 13% to close the week at 719 ¢/kg. This is the third time the light lamb indicator has been above the $7/kg this year. Wagga had the largest contribution with 23% and Naracoorte had the highest average price, trading at a 19% premium. Its saleyard report mentions very strong demand from trade and restocker buyers.
New season lambs are beginning to make up the majority at some sales, Wagga, yarded a total of 47k head of lambs and of this, 65% were new season lambs. Ballarat reported that 90% of the lambs penned were new season. The lift in quality and orderly supply flow has supported prices at a time when they typically trend lower.
Yardings fell week on week at a total level by 5%. Lambs were responsible, with total lamb yardings down by 7% offset slightly by a 1% lift in sheep yardings. When comparing to last year for the same selling week saleyard throughput is down by 4%, however, compared to the 5-year average still 11% higher.
Slaughter for the week prior rose by 8% for lambs and 5% for sheep compared to the week before. NSW had a 20% increase in lamb slaughter and 17% for sheep slaughter and Victoria 4% for Lamb and 5% for sheep.
The week ahead….
Limited falls of rain are forecasted for the week ahead, however recent falls should be sufficient to keep the market buoyant.
Australian sheepmeat exports have steamed past their previous financial year record, with our two major markets upping the ante, and both Middle East and South-East
The mid-winter supply squeeze is starting to show in the sheep and lamb market, with last week’s slaughter and this week’s total physical yardings trending
The Meat and Livestock Australia (MLA) and Australian Wool Innovation (AWI) Sheep Producer Intentions Survey (SPIS) was released last week, and the results were interesting,
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Double digit gains
The Eastern States Trade Lamb Indicator( ESTLI) rose by 4% in value to finish the week at 833¢/kg. Yardings for the indicator also rose by 11% week on week indicating a large shift in demand. A growing share of high-quality new season lambs has helped with the demand spike as buyers looked to fill orders. Wagga topped the list for the largest contribution, with 28% of the trade lamb volume moving through the pens. Wagga averaged a 4% premium in value to the ESTLI and its saleyard report puts that down to “fierce” competition amongst the export buyers.
Despite an 8% lift in prices, the National Mutton Indicator just couldn’t quite crack the $3/kg waterline, closing the week 1 cent shy at 299¢/kg. Yardings skyrocketed by 39% on the week prior. Supply of mutton through the saleyard YTD has been running at high levels, with inflated levels of slaughter, as reported here. Wagga and Ballarat were the largest contributors in regard to volume, and both had a 4% premium on average value.
The National Light Lamb Indicator had the largest rise in value for all indicators week on week, climbing 13% to close the week at 719 ¢/kg. This is the third time the light lamb indicator has been above the $7/kg this year. Wagga had the largest contribution with 23% and Naracoorte had the highest average price, trading at a 19% premium. Its saleyard report mentions very strong demand from trade and restocker buyers.
New season lambs are beginning to make up the majority at some sales, Wagga, yarded a total of 47k head of lambs and of this, 65% were new season lambs. Ballarat reported that 90% of the lambs penned were new season. The lift in quality and orderly supply flow has supported prices at a time when they typically trend lower.
Yardings fell week on week at a total level by 5%. Lambs were responsible, with total lamb yardings down by 7% offset slightly by a 1% lift in sheep yardings. When comparing to last year for the same selling week saleyard throughput is down by 4%, however, compared to the 5-year average still 11% higher.
Slaughter for the week prior rose by 8% for lambs and 5% for sheep compared to the week before. NSW had a 20% increase in lamb slaughter and 17% for sheep slaughter and Victoria 4% for Lamb and 5% for sheep.
The week ahead….
Limited falls of rain are forecasted for the week ahead, however recent falls should be sufficient to keep the market buoyant.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, Nutrien Ag Solutions, , Mecardo
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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.