Lamb lift continues despite market rush

merino

The mid-winter supply squeeze is starting to show in the sheep and lamb market, with last week’s slaughter and this week’s total physical yardings trending lower, despite lambs increasing slightly on the back of last week’s price rise. Online offerings were also down, as all categories achieved another significant price increase, and heavy lambs went very close to breaking the $11/kg barrier.

The National Livestock Reporting Service quoted strong demand from both domestic and export processors at a number of yards, as they competed for heavy and trade lambs. The National Heavy Lamb Indicator had 1,800 head fewer go through and lifted by 67.5¢/kg for the week to close at 1,098¢/kg. This is now about 125¢/kg stronger than where it was a month ago, more than 300¢/kg above year-ago levels, and 54% stronger than the five-year average.

All other national lamb indicators closed the week between 47¢/kg and 70¢/kg higher than the previous week, despite most categories actually having a higher throughput. An extra 3,000 head were recorded on the National Trade Lamb Indicator, but it didn’t stop it from reaching a record weekly average price of 1,071¢/kg. The eastern states’ price was even higher at 1,078¢/kg.

Mutton headed in the same direction, rising 33¢/kg to finish the week at 680¢/kg, definitely a high point for this time of year. More than 21% of National Mutton Indicator eligible sheep came through the Wagga Wagga, NSW, yard, which averaged just higher at 681¢/kg, with Ballarat, Victoria being the clear standout at 736¢/kg for mutton, with the NLRS reporting sales of over 800¢/kg for light and medium weight sheep.

Combined sheep and lamb slaughter fell to 513,561 head last week, falling below both year-ago and 2023 levels for the first non-public holiday week of 2025 so far. AuctionsPlus sheep and lamb offerings were down 8% from the previous week, while NLRS sheep yardings were back 7,000 head. Lamb yardings rose by about 1,000 head. Putting this into perspective, sheep slaughter usually contracts to its lowest point for the year in July, and last week’s figure was still above the five-year average. Lamb slaughter was right on par with the average figure.

Next week

With demand showing no signs of slowing despite producers pushing stock onto the market to take advantage of strong prices, this coming week could give us a very good indication of how many lambs are actually left in the paddock, or if processors will have to keep pushing prices to get through to the new season flush.

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Data sources: MLA, Mecardo

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