The National Mutton Indicator fell by 21% (59 c/kg) for the
week, closing at 222 c/kg. Yardings for the indicator were significantly down
on the previous week by 46% (62k head). Despite the large decrease in supply,
it was not enough to keep demand steady and prices supported. MLA saleyard
reports from major contributors of the indicator talk of not having a full
operating buyer presence at the rail. Hamilton saw a 91% decrease in yardings
for mutton with producers choosing to wait following the price decline earlier
in the week at other saleyards.
The Eastern States Trade Lamb Indicator (ESTLI) was flat
week on week, falling 3 c/kg to 615 c/kg. Yardings for the indicator fell by 4%
for the week with 38k head sold. Ballarat had the highest contribution to the
indicator, with 20% of the total yardings. It averaged 4 c/kg above the
indicator and spoke of a “very erratic market” despite most of the usual buying
group in attendance and operating.
Light Lambs were able to buck the trend of the market and
make some modest gains, the indicator finishing the week up 4% (21 c/kg) to 549
c/kg. Yardings for light lambs were flat week on week, with the price rise
being driven by increased competition from restockers and feedlots.
Initial
data from the MLA show that total combined lamb and sheep yardings were down
for the week, falling by 26% (85k head) compared to the week prior. Sheep
yardings were down by 46% (62k head) following the erratic trend that has been
occurring in the category for the last few months with large fluctuations week
on week. Lambs were more stable but still fell by 12% (23k head). The supply
surge seen in the past few months appears to be losing momentum. Compared to
the five-year seasonal average, total yardings this week were down 16%.
Slaughter levels for the week prior were flat, but still
well above the midterm average. Compared to the week before there was a slight
shift in the mix between lamb and sheep, Sheep increased by 11% (17k head) and
lambs decreased by 4% (18k Head). Slaughter levels for the year are averaging
26% above the five-year average.
Erratic sheep moves
Next week
A shorter working week with public holidays on Monday for Victoria, South Australia, Tasmania and ACT will see some disruption to sales and processing. Tighter throughput may have a positive impact on price as buyers look to fill their orders with limited supply.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
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