Strong processor demand for new season lambs and rain falling in the southeast of the country put the lamb market in the green this week, with prices lifting across all categories despite yarding numbers also being on the up. Last week’s increase prompted an extra 11,600 sheep onto the market this week, but it didn’t put a dent in the mutton price, which held firm.
Starting with mutton, it closed out the week at 735¢/kg, right on par with the previous week. As mentioned, the yarding increased significantly, but it was still lower year-on-year for sheep in the same week. NSW led the charge, yarding 53,000 of the total 83,000 sheep eligible for the National Mutton Indicator, and averaging 766¢/kg. Forbes, NSW, had 11% of the throughput and averaged a whopping 870¢/kg, with the National Livestock Reporting Service quoting Merino ewes topping at $300/head. Sheep prices in the west fell by 6¢/kg to 638¢/kg.
Total lamb yardings were up 6% as sucker supply builds more momentum. On the processing front, despite trade lamb numbers also increasing by more than 11,000 head week-on-week, the National Trade Lamb Indicator experienced the biggest rise for the week, jumping 47¢/kg to 1139¢/kg. This price level being sustained so far in the spring means the NTLI is currently averaging 971¢/kg for the year to date, which is more than $1/kg clear of the previous high average set in 2021.
Heavy lambs also had a price rise of 23¢/kg for the week, landing pretty much in line with the trade price at 1138¢/kg. The National Heavy Lamb Indicator is now the only price guide which sits significantly above month-ago levels, operating at a 27¢/kg premium, even though heavy lamb indicator throughput is now at its highest point since August.
Nationally, restocker lambs lifted 14¢/kg to 1105¢/kg. NSW operated above the average; however, it actually lost ground week-on-week, falling 4¢/kg to 1128¢/kg. Wagga Wagga, NSW, had 20% of the national throughput and averaged 1205¢/kg for restocker lambs, with the NLRS quoting store lamb supply as up and prices down due to a lack of southern (Victorian) support. Notably, Merino lambs lifted 33¢/kg to 1013¢/kg.
Next week
Plenty of confidence in the current state of play is obvious, and this is likely to strengthen further if more rain falls in the coming week. Lamb slaughter was down week-on-week in the last week of October, but it was still well above year-ago levels and in the top five for lamb slaughter numbers this year. Despite the expectation of a later sucker season, the high turn-off in October could indicate producers were getting in while the going was good, not willing to bank on seasonal or market conditions if they held off. What lamb numbers are actually left to come will be what dictates the market for the rest of the year.
Australian sheep flock estimates for the next three years are now more closely reflecting industry insights and assumptions after consecutive poor seasonal conditions in many
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Lamb lifts despite market rush
Starting with mutton, it closed out the week at 735¢/kg, right on par with the previous week. As mentioned, the yarding increased significantly, but it was still lower year-on-year for sheep in the same week. NSW led the charge, yarding 53,000 of the total 83,000 sheep eligible for the National Mutton Indicator, and averaging 766¢/kg. Forbes, NSW, had 11% of the throughput and averaged a whopping 870¢/kg, with the National Livestock Reporting Service quoting Merino ewes topping at $300/head. Sheep prices in the west fell by 6¢/kg to 638¢/kg.
Total lamb yardings were up 6% as sucker supply builds more momentum. On the processing front, despite trade lamb numbers also increasing by more than 11,000 head week-on-week, the National Trade Lamb Indicator experienced the biggest rise for the week, jumping 47¢/kg to 1139¢/kg. This price level being sustained so far in the spring means the NTLI is currently averaging 971¢/kg for the year to date, which is more than $1/kg clear of the previous high average set in 2021.
Heavy lambs also had a price rise of 23¢/kg for the week, landing pretty much in line with the trade price at 1138¢/kg. The National Heavy Lamb Indicator is now the only price guide which sits significantly above month-ago levels, operating at a 27¢/kg premium, even though heavy lamb indicator throughput is now at its highest point since August.
Nationally, restocker lambs lifted 14¢/kg to 1105¢/kg. NSW operated above the average; however, it actually lost ground week-on-week, falling 4¢/kg to 1128¢/kg. Wagga Wagga, NSW, had 20% of the national throughput and averaged 1205¢/kg for restocker lambs, with the NLRS quoting store lamb supply as up and prices down due to a lack of southern (Victorian) support. Notably, Merino lambs lifted 33¢/kg to 1013¢/kg.
Next week
Plenty of confidence in the current state of play is obvious, and this is likely to strengthen further if more rain falls in the coming week. Lamb slaughter was down week-on-week in the last week of October, but it was still well above year-ago levels and in the top five for lamb slaughter numbers this year. Despite the expectation of a later sucker season, the high turn-off in October could indicate producers were getting in while the going was good, not willing to bank on seasonal or market conditions if they held off. What lamb numbers are actually left to come will be what dictates the market for the rest of the year.
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Data sources: MLA, Mecardo
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