Prices rose across the lamb and sheep market as the winter price rally really hits its stride. Yardings were unchanged week on week as producers looked to cash in on recent gains. Quality is driving prices up according to the saleyard reports with buyers keenly competing for the best pens.
Heavy Lambs rose 2% (20 c/kg) during the selling week to finish the week at 882 c/kg. Yardings for the indicator lifted by 9% to a total of 26.7k head. The indicator did edge over the 900 c/kg mark earlier in the week following Ballarat’s sale, which had the highest average price for the week of 985 c/kg. According to the saleyard report this was achieved with pens of “excellent condition mostly off supplementary feed” with the top of the market making $356/head. The heavy lamb indicator is currently just 9% down from the all-time peak in late August 2021.
The National Mutton Indicator lifted 8% to 481 c/kg and yardings fell by 1% to 55.3k head. Ballarat again achieved the highest average selling price across the indicator of 542 c/kg, helping pull the indicator closer to the 500 c/kg mark. Wagga had the largest contribution to the indicator in regard to volume, with 13k head sold through its yards.
Restocker Lambs increased by 8% in price, ending the week at 642 c/kg. Volume of lambs back to the paddock increased by 49% week on week. Despite the price rise, the restocker indicator still hasn’t surpassed the surge seen at the start of the year as markets reopened from the Christmas break, unlike the other indicators for lamb and sheep.
Supply from the paddock was strong with initial NRLS data showing that total yardings for the week lifted by 15% (41k head) compared to last week to 311k head. Lambs had the larger increase of 17% compared to sheep with 11%.
Total slaughter volume for the week prior fell week on week by 10%, driven by a 30% decrease in east coast sheep slaughter. The increase in processor capacity that has been seen since last year has helped support the price rally seen over the last 8 months. Processors will be conscious not to keep driving the prices higher, with one saleyard report mentioning some processors starting to reduce shifts following the price rally seen recently.
The week ahead….
We’re yet to see a big swing towards tighter supply yet the market is certainly preparing for it. It may be some time now before prices move significantly lower. As winter continues and we get closer to the end of the season the spread between the top and bottom pens will increase.
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Heavy lambs push towards the all time high
Heavy Lambs rose 2% (20 c/kg) during the selling week to finish the week at 882 c/kg. Yardings for the indicator lifted by 9% to a total of 26.7k head. The indicator did edge over the 900 c/kg mark earlier in the week following Ballarat’s sale, which had the highest average price for the week of 985 c/kg. According to the saleyard report this was achieved with pens of “excellent condition mostly off supplementary feed” with the top of the market making $356/head. The heavy lamb indicator is currently just 9% down from the all-time peak in late August 2021.
The National Mutton Indicator lifted 8% to 481 c/kg and yardings fell by 1% to 55.3k head. Ballarat again achieved the highest average selling price across the indicator of 542 c/kg, helping pull the indicator closer to the 500 c/kg mark. Wagga had the largest contribution to the indicator in regard to volume, with 13k head sold through its yards.
Restocker Lambs increased by 8% in price, ending the week at 642 c/kg. Volume of lambs back to the paddock increased by 49% week on week. Despite the price rise, the restocker indicator still hasn’t surpassed the surge seen at the start of the year as markets reopened from the Christmas break, unlike the other indicators for lamb and sheep.
Supply from the paddock was strong with initial NRLS data showing that total yardings for the week lifted by 15% (41k head) compared to last week to 311k head. Lambs had the larger increase of 17% compared to sheep with 11%.
Total slaughter volume for the week prior fell week on week by 10%, driven by a 30% decrease in east coast sheep slaughter. The increase in processor capacity that has been seen since last year has helped support the price rally seen over the last 8 months. Processors will be conscious not to keep driving the prices higher, with one saleyard report mentioning some processors starting to reduce shifts following the price rally seen recently.
The week ahead….
We’re yet to see a big swing towards tighter supply yet the market is certainly preparing for it. It may be some time now before prices move significantly lower. As winter continues and we get closer to the end of the season the spread between the top and bottom pens will increase.
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Data sources: MLA, 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.