Spring is coming to an end, but the consequences of the dry southern winter continue to drive the market. The search for weight is creating premiums but will southern rain drum up some interest for the other articles as we approach the end of the year?
Merino lambs have missed the boat of the firmer market in
the last few weeks. That changed this week with Merino lamb supply to the yards
tapering, resulting in a 72¢ improvement to 635¢/kg cwt. Lighter lambs also
improved this week, with the national indicator rising 20¢ to 730/kg cwt. The cavalry hasn’t arrived when it comes to
ideal new season lambs in all saleyards, but MLA reported that the quality and
condition of lambs improved in Hamilton and Wagga.
Forbes and Carcoar saw improvement on the weight front
pushing both markets higher but for the most part, heavy lambs are still hard
to find which is a key factor playing into the result on auction day. Premiums
are being paid for heavier trade and export lambs. The National Heavy Lamb
indicator improved a further 11¢ this week to 872¢/kg cwt and the heaviest
lambs at the yards are now 62% higher than this time last year.
Despite a 7% decline in Mutton yardings nationally week on
week, over 80,000 heads still qualified for the National Mutton Indicator which
rose 3¢ to 367¢/kg cwt. Its clear processors aren’t shying away from the
job. The latest quarter was the
strongest for sheep slaughter in Quarter 3 since 2006. As discussed by Angus
Brown in Mecardo this week, stronger mutton slaughter suggests more ewes are
being culled, this could be due to them not rearing lambs in the winter and
spring (read
more here).
Over 250,000 sheep were slaughtered last week so momentum in
turnoff isn’t declining just yet. A stronger mutton market is likely pouring
gasoline on the fire when it comes to moving cull ewes off the farm. Looking at
the tea leaves the supply of lambs next year will be impacted.
Next week
Whilst not ideal for those in the harvester this week, rainfall reached wider Victoria this week. Recent strength in the market might bring more stock to the yards now that the south has had a bit of a drink. The pick of the lighter lambs are likely to continue to demand premiums.
Lambs continue to reclaim the saleyards, with mutton prices remain the beneficiary. With the Easter and the Anzac Day breaks approaching, the top end trade
The March Meat and Livestock Australia (MLA) Australian Sheep Industry Projections were released on Monday. The projections provide a view on where the sheep supply
First week of autumn saw slight fluctuations in the value of the majority of indicators, yardings retreated, as did some of the buyer’s demand according
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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.
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.
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.
Here comes the rain again
Merino lambs have missed the boat of the firmer market in the last few weeks. That changed this week with Merino lamb supply to the yards tapering, resulting in a 72¢ improvement to 635¢/kg cwt. Lighter lambs also improved this week, with the national indicator rising 20¢ to 730/kg cwt. The cavalry hasn’t arrived when it comes to ideal new season lambs in all saleyards, but MLA reported that the quality and condition of lambs improved in Hamilton and Wagga.
Forbes and Carcoar saw improvement on the weight front pushing both markets higher but for the most part, heavy lambs are still hard to find which is a key factor playing into the result on auction day. Premiums are being paid for heavier trade and export lambs. The National Heavy Lamb indicator improved a further 11¢ this week to 872¢/kg cwt and the heaviest lambs at the yards are now 62% higher than this time last year.
Despite a 7% decline in Mutton yardings nationally week on week, over 80,000 heads still qualified for the National Mutton Indicator which rose 3¢ to 367¢/kg cwt. Its clear processors aren’t shying away from the job. The latest quarter was the strongest for sheep slaughter in Quarter 3 since 2006. As discussed by Angus Brown in Mecardo this week, stronger mutton slaughter suggests more ewes are being culled, this could be due to them not rearing lambs in the winter and spring (read more here).
Over 250,000 sheep were slaughtered last week so momentum in turnoff isn’t declining just yet. A stronger mutton market is likely pouring gasoline on the fire when it comes to moving cull ewes off the farm. Looking at the tea leaves the supply of lambs next year will be impacted.
Next week
Whilst not ideal for those in the harvester this week, rainfall reached wider Victoria this week. Recent strength in the market might bring more stock to the yards now that the south has had a bit of a drink. The pick of the lighter lambs are likely to continue to demand premiums.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Mecardo
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Lambs continue to reclaim the saleyards, with mutton prices remain the beneficiary. With the Easter and the Anzac Day breaks approaching, the top end trade
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The March Meat and Livestock Australia (MLA) Australian Sheep Industry Projections were released on Monday. The projections provide a view on where the sheep supply
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First week of autumn saw slight fluctuations in the value of the majority of indicators, yardings retreated, as did some of the buyer’s demand according
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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.
SERVICES AND CAPABILITIES STATEMENT BROCHURE
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.