Sheep transport vehicle

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.

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Data sources: MLA, Nutrien Ag Solutions, , Mecardo

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