From producers to exporters, the supply chain is in the thick of the Spring seasonal supply increase. Processors are working at full throttle, as total slaughter eclipsed 534,000 head last week and ramped up again this week, harvest is well underway in key cropping zones, Middle East lamb imports had their best month in October since 2018 and restocker buyers were active in NSW and SA.
In a welcome sign and an indication of a small resurgence in restocker demand, restocker spec lamb yardings rose 25% this week to 66K nationally but NSW and SA both experienced double-digit improvements in pricing. NSW restocker lambs jumped 28¢ to 347¢/kg cwt and SA restocker lambs reached 351¢/kg cwt (an 11¢ improvement week on week). Victorian restockers however lost 16¢ to 354¢/kg cwt as yardings this week were almost double the number last fortnight.
Light Lamb’s recent improvements hit a supply roadblock this week. Per MLA, Light lamb yardings rose 20% week on week, and the additional 13K head through the yards put downward pressure on the National light lamb indicator which lost 9¢ to 369¢/kg cwt. The additional numbers came out of Victoria and South Australia, which were resilient to the increase in supply on the price front. Victorian light lambs lost just 2¢ for the week, ending at 400¢/kg cwt and South Australia improved 13¢ to 406¢/kg cwt.
The mutton treadmill continued this week, yardings remain elevated and pricing has crept upwards but is essentially a sideways movement in the context of this season’s price decline. WA mutton improved 5¢ to 71¢/kg cwt, NSW mutton 12¢ to 124¢/kg cwt and Victorian Mutton lost 1¢ to 96¢/kg cwt. The National mutton indicator improved 7¢ to 110¢/kg cwt a 10% improvement week on week but still sits 78% lower year on year.
Next week
The balance of supply and demand fundamentals at this time of year have been somewhat assisted by the re-emergence of Middle East imports.
Rain in certain areas also provides another path for lighter lambs as restockers look to early 2024’s potential opportunities.
The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
Australian sheep and lamb exports increased in September but remained subdued in relation to recent trends. The US took dominant market share for the month,
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In the thick of it
Next week
The balance of supply and demand fundamentals at this time of year have been somewhat assisted by the re-emergence of Middle East imports.
Rain in certain areas also provides another path for lighter lambs as restockers look to early 2024’s potential opportunities.
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Data sources: MLA, BOM, 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.
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.