The latest slaughter and yarding’s numbers are for the week ending the 9th of October, so don’t provide much insight into this week’s weaker market. However, Meat & Livestock Australia’s reports from some of the key yards suggest big week on week lifts in supply in NSW.
Last week Victoria saw a significant lift in yarding’s with an extra 18K head of lambs making an appearance. This wasn’t enough to make up for a fall in volumes in NSW though, with total east coast lamb yarding’s down 7%. A look at the five-year average for this time in the season shows us that lamb yarding’s last week were 42% higher than average. The week on week story was similar for sheep in yards – big numbers in Victoria, while they dropped off in NSW to see total east coast sheep yarding’s down 7%. This was 24% below the seasonal five-year average.
Slaughter numbers for both sheep and lambs were lower last week as well. It was just a small drop of 2% for lambs mind you, but we haven’t seen east coast sheep slaughter this low for a few months.
The Eastern States Trade Lamb Indicator (ESTLI) lost 51¢, or 7% on the week to end at 764¢/kg cwt. This removed all last week’s gain, and then some. Buyers in the west were chasing up some of the gap between the east coast prices. The Western Australian Trade Lamb Indicator lifted 33¢ on the week to 618¢/kg cwt.
The National Restocker Lamb Indicator was the only lamb indicator to see improvements, up 24¢ to 875¢/kg cwt. Light and Merino lambs lost 20 to 25¢, while the Heavy Lamb Indicator ended the week 49¢ lower.
With sheep supply tightening further, the National Mutton Indicator (NMI) gained 40¢ to 609¢/kg cwt. This is the first time we have seen the NMI above 600¢ since June.
Lamb market finds the tipping point
The latest slaughter and yarding’s numbers are for the week ending the 9th of October, so don’t provide much insight into this week’s weaker market. However, Meat & Livestock Australia’s reports from some of the key yards suggest big week on week lifts in supply in NSW.
Last week Victoria saw a significant lift in yarding’s with an extra 18K head of lambs making an appearance. This wasn’t enough to make up for a fall in volumes in NSW though, with total east coast lamb yarding’s down 7%. A look at the five-year average for this time in the season shows us that lamb yarding’s last week were 42% higher than average. The week on week story was similar for sheep in yards – big numbers in Victoria, while they dropped off in NSW to see total east coast sheep yarding’s down 7%. This was 24% below the seasonal five-year average.
Slaughter numbers for both sheep and lambs were lower last week as well. It was just a small drop of 2% for lambs mind you, but we haven’t seen east coast sheep slaughter this low for a few months.
The Eastern States Trade Lamb Indicator (ESTLI) lost 51¢, or 7% on the week to end at 764¢/kg cwt. This removed all last week’s gain, and then some. Buyers in the west were chasing up some of the gap between the east coast prices. The Western Australian Trade Lamb Indicator lifted 33¢ on the week to 618¢/kg cwt.
The National Restocker Lamb Indicator was the only lamb indicator to see improvements, up 24¢ to 875¢/kg cwt. Light and Merino lambs lost 20 to 25¢, while the Heavy Lamb Indicator ended the week 49¢ lower.
With sheep supply tightening further, the National Mutton Indicator (NMI) gained 40¢ to 609¢/kg cwt. This is the first time we have seen the NMI above 600¢ since June.
The week ahead….
Once prices take a turn in the spring it’s rare to find them rising again until December or January. That being said it’s an unusual market we’re dealing with this year and with Mutton above 600¢ and demand from Restockers supporting the market the depth of the fall might not be what we’re used to.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
Categories
Have any questions or comments?
Get them light, hold them tight
Only a few weeks in and it’s been a busy January. Strong prices have got the saleyards pumping again, but processors have been a little
Victorian supply dragging in December and worse in January
January lamb and sheep slaughter has failed to rally in its usual fashion. Normally January sees a spike in both sheep and lamb slaughter as
Restockers required
Restocker lambs have opened the year as one of the hottest commodities, surging higher as producers, feeders and processors compete for whatever livestock they can
Market adjusts after strong start
What a strong start to the new year for Sheepmeat! All categories of lamb and mutton set into 2021 much higher than where they left
Don’t have an account with us? Join free.
You can have full premium access to all of our content with a monthly or annual subscription.
Alternatively, create a free account to access our Insights blog and two free premium article a month!
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.