Lamb prices have been moving within a fairly narrow band over the recent weeks, suggesting that sellers and buyers are content with the market. Restockers were willing to pay a bit more for lambs this week. This wasn’t the case for processors in the east however, as trade and heavy lamb prices fell marginally.
Last week’s price lift did appear to bring a few more lambs to yards, with east coast numbers lifting 7% to 189,010 head. The larger showing was split evenly between saleyards in Victoria and NSW and brought the weeks tally to just 1% under the five-year seasonal average.
Slaughter of both lambs and sheep increased slightly on the week prior but remained below average levels. Volumes processed in NSW have been above average since the start of the year, however both Victoria and SA have been dragging the chain.
The Eastern States Trade Lamb Indicator lost 2.5% over the week to end at 848¢/kg cwt. Over West and the move was much the same with a 2.9% fall to 696¢/kg cwt.
A closer look at price movements within the state categories shows lamb is a bit mixed. In NSW and Victoria heavy and trade lamb prices ended weaker. Heavy lambs in Victoria lost 33¢ to 827¢ and in NSW lost 31¢ to 851¢/kg cwt. On the other hand, the SA market had a very strong week, with strong price rises across all categories. Of note, the National Restocker Lamb indicator gained 6% or 57¢ to 973¢, placing the indicator just 17¢ behind the same time last year.
For those with sheep to turn off, the mutton market remains strong with the NMI at 631¢ and just 5% shy of year ago levels. Jamie-Lee looked at the outlook for mutton in this weeks analysis (view here). While prices are good for sellers, overseas buyers must be balking at the current levels in USD terms.
The week ahead….
With the AUD hitting a three year high earlier in the week, our lamb and especially mutton are at their most expensive in USD terms. We all know that’s not good for our export markets, and the impact will be something to look closely for in the February export data when its released next week. But for now, given the tight season and rainfall outlook, producers are likely to hold back if prices ease too far.
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
Sheep producers are making way for the winter crop and getting ahead of the upcoming public holiday sales disruption. Close to 250,000 lambs flooded to
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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.
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Lamb market gets comfy
Last week’s price lift did appear to bring a few more lambs to yards, with east coast numbers lifting 7% to 189,010 head. The larger showing was split evenly between saleyards in Victoria and NSW and brought the weeks tally to just 1% under the five-year seasonal average.
Slaughter of both lambs and sheep increased slightly on the week prior but remained below average levels. Volumes processed in NSW have been above average since the start of the year, however both Victoria and SA have been dragging the chain.
The Eastern States Trade Lamb Indicator lost 2.5% over the week to end at 848¢/kg cwt. Over West and the move was much the same with a 2.9% fall to 696¢/kg cwt.
A closer look at price movements within the state categories shows lamb is a bit mixed. In NSW and Victoria heavy and trade lamb prices ended weaker. Heavy lambs in Victoria lost 33¢ to 827¢ and in NSW lost 31¢ to 851¢/kg cwt. On the other hand, the SA market had a very strong week, with strong price rises across all categories. Of note, the National Restocker Lamb indicator gained 6% or 57¢ to 973¢, placing the indicator just 17¢ behind the same time last year.
For those with sheep to turn off, the mutton market remains strong with the NMI at 631¢ and just 5% shy of year ago levels. Jamie-Lee looked at the outlook for mutton in this weeks analysis (view here). While prices are good for sellers, overseas buyers must be balking at the current levels in USD terms.
The week ahead….
With the AUD hitting a three year high earlier in the week, our lamb and especially mutton are at their most expensive in USD terms. We all know that’s not good for our export markets, and the impact will be something to look closely for in the February export data when its released next week. But for now, given the tight season and rainfall outlook, producers are likely to hold back if prices ease too far.
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Data sources: MLA, NLRS, 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.
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.
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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.