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.
A short week, and closed saleyards on Thursday has culminated in some relief on the supply front as combined lamb and sheep yardings nationally dropped
Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
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.
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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.
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.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Mecardo
Categories
Have any questions or comments?
44% drop in supply springs market into action
A short week, and closed saleyards on Thursday has culminated in some relief on the supply front as combined lamb and sheep yardings nationally dropped
Winter is coming, where will lamb land?
While many are focussed on the Anzac Day market of a good autumn break, and whether more rain – or any rain at all for
Sheep meat price volatility
The drop in sheep meat prices in 2023 came as an unwelcome shock after the better part of a decade of rising prices. This article
Light lambs grounded
Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.
Research: Analysis of the Australian sheep flock
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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.