The lamb and sheep indicators were quite inelastic this week, with large swings in supply having less impact on the value. Restockers were very active in the market when compared to the last few weeks. New season lamb continues to build in numbers, whilst still commanding a premium thanks to buyers’ pursuit for quality.
The Eastern States Trade Lamb Indicator ticked back over the
$8/kg mark this week, rising 1% to 801¢/kg. Yardings for the week were down by 7%,
which would have helped with the slight price rise. Wagga had the largest
volume contribution with 33%, and the second highest average price of 834¢/kg,
4% above the indicator.
The Heavy Lamb indicator had the largest price rise out of all of
the indicators, lifting 3% to 821¢/kg. This was despite a rise in supply,
numbers were up 11% to 14.5k head, which would typically apply downward
pressure on pricing, but demand for the heavy lambs was resilient. Wagga again
had the largest contribution, its market report said, “Victorian processors
[were] market drivers”.
The National Mutton indicator was back week on week for both value
and supply. Prices fell by 7% to 267¢/kg and supply for the indicator was down
18%. Wagga and Ballarat were the highest contributing saleyards, both with
17.3% each.
Restocker lambs had a large 37% increase in supply for the week
taking the total yardings of the indicator to 28.2k head. Despite the large
increase in supply, the value of the indicator was down slightly to 2% to close
the week at 672¢/kg.
New-season lambs continue to attract a premium for their quality
as the tail end of the old-season lambs become more varied. Wagga had 23k head,
the largest they’ve had this season. In the saleyard reports that are mentioned
prices the new season lambs are still clearing the $8/kg waterline.
Initial yardings data reported from the MLA show a 7% decrease in
yardings week on week, this was driven by sheep which were down by 16% whilst
lambs were only down by 2%. This is the 3rd week of yarding
decreases, which has pushed the level of supply below the 5-year average as
shown in Figure 2.
Total slaughter for lamb and sheep for the week prior was down by
1%, when drilling down lamb was up 7% and sheep was down 10% when compared to
the week before that. NSW drove the sheep decrease with a 19% reduction on the
week before, for lambs it was WA and Victoria with 28% and 27% increases week
on week respectively.
Next week
The BOM has rain for the majority of the East Coast next week which should help support current sentiment for the restockers and feedlotters. Slaughter should also rise with public holidays not disrupting the normal operation of processing plants for the next few weeks.
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Heavy lambs win the week
The Eastern States Trade Lamb Indicator ticked back over the $8/kg mark this week, rising 1% to 801¢/kg. Yardings for the week were down by 7%, which would have helped with the slight price rise. Wagga had the largest volume contribution with 33%, and the second highest average price of 834¢/kg, 4% above the indicator.
The Heavy Lamb indicator had the largest price rise out of all of the indicators, lifting 3% to 821¢/kg. This was despite a rise in supply, numbers were up 11% to 14.5k head, which would typically apply downward pressure on pricing, but demand for the heavy lambs was resilient. Wagga again had the largest contribution, its market report said, “Victorian processors [were] market drivers”.
The National Mutton indicator was back week on week for both value and supply. Prices fell by 7% to 267¢/kg and supply for the indicator was down 18%. Wagga and Ballarat were the highest contributing saleyards, both with 17.3% each.
Restocker lambs had a large 37% increase in supply for the week taking the total yardings of the indicator to 28.2k head. Despite the large increase in supply, the value of the indicator was down slightly to 2% to close the week at 672¢/kg.
New-season lambs continue to attract a premium for their quality as the tail end of the old-season lambs become more varied. Wagga had 23k head, the largest they’ve had this season. In the saleyard reports that are mentioned prices the new season lambs are still clearing the $8/kg waterline.
Initial yardings data reported from the MLA show a 7% decrease in yardings week on week, this was driven by sheep which were down by 16% whilst lambs were only down by 2%. This is the 3rd week of yarding decreases, which has pushed the level of supply below the 5-year average as shown in Figure 2.
Total slaughter for lamb and sheep for the week prior was down by 1%, when drilling down lamb was up 7% and sheep was down 10% when compared to the week before that. NSW drove the sheep decrease with a 19% reduction on the week before, for lambs it was WA and Victoria with 28% and 27% increases week on week respectively.
Next week
The BOM has rain for the majority of the East Coast next week which should help support current sentiment for the restockers and feedlotters. Slaughter should also rise with public holidays not disrupting the normal operation of processing plants for the next few weeks.
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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.