Heavy lambs the belle of the ball

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No discounts for lambs at saleyards this week for EOFY as the majority of indicators saw double-digit improvements.

The National Restocker lamb indicator was up 28¢ to 613¢/kg cwt this week.  This was largely driven by restocker buyers in NSW, as the NSW indicator rose 57¢ for the week to 660¢/kg cwt. The average price paid by feeder buyers eclipsed 700¢/kg cwt after rising 68¢ this week to 702¢/kg cwt.

The National Trade Lamb Indicator was up 52¢ to 762¢/kg cwt, with a 6% increase in supply week-on-week, not denting buyer demand. Over the month of June per MLA, the average price per head nationally for Trade lambs sits at $164, which is $21 or 14% higher than at the start of the month.

The recovery of Heavy lamb prices this Winter has been a welcome sight, and this week was no exception.  Nationally the Heavy lamb indicator rose 28¢ to 747¢/kg cwt with lower numbers contributing, but notably strong demand for higher quality lambs also helped drive numbers upward.  With elevated capacity and strong export demand, the rush to acquire finished stock over the Winter has seen Heavy lambs nationally improve 40% on this time last year.

Based on NLRS reported figures at the time of writing, Sheep yardings nationally were down 22% week on week to 78K head. Lower throughput wasn’t enough to push the National Mutton indicator higher, which lost 4¢ to 336¢/kg cwt.  However, in both SA and WA, mutton indicators saw 50¢ increases week-on-week. 

East Coast Slaughter is humming in June, in the last 3 weeks more than 1.25 million lambs have been processed. This is 20% higher year-on-year for the same three-week period.  

Next week

It will be several months before we see an update to Sheep flock numbers from the ABS, but what we can ascertain from the weekly data available to us is that Lamb exports are strong, slaughter capacity is elevated and finished stock are the belle of the ball at the minute.

A difficult start rainfall-wise in southern sheep country elevates the risk of accessing finished supply in the next few months which should preserve much of the momentum of the last few months.

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Data sources: MLA, Mecardo

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