Sheep in an Australian field in rural NSW on a foggy morning

Indicative NLRS yardings had supply higher again, but in a refreshing change, lambs dominated throughput this week, and despite the surge in supply, trade lambs remained relatively steady, whilst restockers chasing lighter lambs remained competitive chasing lighter lambs in a heavier offering this week.

Indicative NLRS yardings had supply higher again, but in a refreshing change, lambs dominated throughput this week. Lamb yardings were up 26% week-on-week whilst the sheep numbers saw a 4% decline week-on-week. The easing supply pressure of sheep to the yards benefitted mutton pricing as the national mutton indicator improved 9¢ to 380 ¢/kg cwt.

With lambs making weight, competition for lighter lambs amped up from restocker buyers as the National Restocker lamb indicator jumped up 47¢ to 748¢/kg cwt. Despite almost 49000 head qualifying for the indicator (24% higher WoW), National trade lambs lost just 2 cents to 784 c/kg cwt. Considering the immense volume, the resilience of trade lamb demand despite no meaningful rainfall in the south is a reassuring demand signal.  Eastern States Trade Lamb Indicator (ESTLI) finished 4¢ lower to 789¢/kg cwt.

Out of 7 weeks of available data for slaughter in 2025, 4 have seen lamb slaughter eclipse 490K head.  Combined national lamb and sheep slaughter eclipsed 725K head last week.  Processors remain keen to acquire stock which bodes well for prospects later into the season.

Across the yards, the improved volume of finished lambs contributed to firmer demand for the most part, particularly for restocker types that were now relatively scarcer than they have been in recent weeks. Wagga saw erratic bidding and favouritism for grain-fed articles and Forbes saw a heavy offering that created strong competition.

On Mecardo this week Angus Brown investigated the record lamb slaughter and what the short term and long term implications are of elevated supply levels (read more here). Short-term lamb supply looks adequate, but longer-term mutton and lamb supply should tighten relative to the level of processor demand we are currently experiencing.

The week ahead….

An alleviation in the short term from cull sheep turnoff is the key lever needed to push lamb markets higher, which will likely require some March rainfall down south.

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Data sources: MLA, Nutrien Ag Solutions, Mecardo   

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