Sheep walking through a gate

Some more rain has fallen, but demand remains patchy. Light lambs to slaughter remain under pressure and heavy cull lambs and sheep remain a rare commodity.

Post April is always a tricky time to gauge where the market sits particularly at the moment with differing seasonal conditions across the country’s key sheep production regions. Saleyard reports give us an indication that its quite erratic. Wagga reports feeders outcompeting other buyers for the pick of the yardings. Merino ewes were sent back south at Dubbo. Grainfed lambs were the most sought after in Ballarat. Hamilton buyers prioritised heavier export lambs and Naracoorte had more luck amongst restocker buyers than elsewhere. 

Indicators were a mixed bag but skewed lower overall. The Eastern States Trade Lamb Indicator (ESTLI) lost 35¢ to 1155¢/kg cwt.  The steepest declines remained on the light lamb indicator (48¢ lower to 1079¢.kg cwt) the best performer were heavy lambs, up 9¢ to 1109¢/kg cwt. The National Mutton Indicator rose 3¢ to 774¢/kg cwt.

Rain has been very beneficial in the south, but its hasn’t been widespread and intense enough to see the market completely flip to the restockers in all locations. With higher costs, feeders need to find value or quality to make the most of a trade and are chasing grain fed stock.  If you’ve got turnoff sheep, processors are very keen to get them if they can or take them away from producers.

As discussed on Mecardo this week by Jamie-Lee Oldfield, year to date sheep slaughter is sitting 70% lower than the same period in 2025 (article available here). Since March slaughter numbers have taken a dive, and the result will mean that we are unlikely to reach forecasted annual slaughter.   Combined slaughter week ending 1st May was 497K which is still impacted by public holidays. 

The week ahead….

Probably not enough rain for a strong push for lighter lambs back to the paddock before winter, but feeders should be active.

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Data sources: Mecardo, Bloomberg, MLA 

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