Higher quality brings higher prices

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Lamb indicators grew week on week in value terms due to tightening supply. Quality and increased demand at the rail also contributed to the price rises, according to market reports.

The Eastern State Trade Lamb Indicator rose 3% week on week in value, closing the week at 794¢/kg. Ballarat and Wagga made up 40% of the volume contribution for the week, which in total was down by 2% on the week prior. Ballarat averaged the same as the indicator, whilst Wagga had a 3% premium. Waggas saleyard report mentions “additional weight on offer” and a “full buying field,” which increased the competition and pushed prices up.

The National Mutton Indicator had the largest lift in value for the week, rising by 10% to end at 370¢/kg. Volume for the indicator was back significantly, with yardings falling by 41% for the week, following their surge in volume this month.

In the west, the numbers were back even more significantly than the mutton indicator for trade lambs, with total volume falling by 60%. Despite this large decrease in throughput, the value of trade lambs in the West also took a nosedive, falling 5% for the week. Muchea sold the majority of trade lambs for the week; its saleyard report talks of slipping quality across the pens.

Multiple saleyard reports mention an increase in quality, as well as the return of restockers to the market, both supporting demand and putting upward pressure on prices. The Restocker indicator rose by 6% and cleared the $7/kg mark.

Initial yardings data for the week were back by 19% in total, lambs back 18% and sheep 20%. When looking at a year ago, lambs for the same selling week were down 9% whilst sheep were up 49%. Whilst for sheep, this is a significant change between 2025 and 2024, YTD volumes in 2025 are 3% behind YTD 2024.  

Total slaughter levels were flat compared to the previous week, with close to 720,000 head processed. There was a very slight shuffle between lamb and sheep between the states, with the total sheep volume falling by 2% and lambs rising by 1%.

Next week

Small amounts of rain for the east coast are due to fall  but currently, nothing is forecasted significant enough to move the markets. Off the back of the price list, some producers will decide to sell, which will increase supply, which will apply negative pressure on prices. Processors’ capacity remains elevated, and demand seems steady for quality.

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Data sources: Mecardo, MLA, BOM

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