Saleyard lamb and sheep throughput continue to track down slightly, with wild weather no doubt stalling some numbers in the south this week. As a result, buyers chasing quality have again helped to firm up the market.
Winter clean-up lots marking the tail end of the old season
lambs in the south are widening the market divide on quality. Many saleyard
reports noted a cheaper trend for lesser quality lambs, while prices for
quality old season lambs, and new season lambs improved.
Trade Lambs were dearer in all eastern states this week,
with NSW topping the charts at 844¢ under the influence of rising new season
lamb numbers. In the West, trade lambs slipped 3¢ to 665¢/kg cwt, but the
market remains at recent highs. Heavy lambs also held their weight this week,
with the National Heavy Lamb Indicator up 9¢ week on week to 847¢/kg cwt, the
strongest it’s been since mid-July.
Light lamb prices have on average risen 26¢ in the last
month and saw a slight uptick this week. This could in part be driven by
restocker activity at the light end of the market, particularly from buyers in
NSW that have the opportunity to put them back onto a good bank of spring feed.
The ME bag lamb market is the other supporter, and this was noted in Bendigo
sale reports as a segment that did sell well this week. For the year to August,
we have already sent more lamb to the Middle East than the full 2023 calendar
year and have sent 32% more lamb over January to August than the record year of
2018.
Next week
With large volumes of light lambs expected to hit the market this spring, strong Middle Eastern demand and some restocking interest will help to ease the pressure to come. As mentioned in this week’s analysis without a decent turnaround in restocking interest a wider spread is likely to open up between restocker and store lambs. The two-week rainfall forecast is looking promising for Victoria and eastern NSW, but we won’t hold our breath until it hits the ground.
The lamb market has so far powered through spring at record levels, as a seasonally contracted lamb crop and historically high demand keep the momentum
The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
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Lamb market standing on solid ground
Winter clean-up lots marking the tail end of the old season lambs in the south are widening the market divide on quality. Many saleyard reports noted a cheaper trend for lesser quality lambs, while prices for quality old season lambs, and new season lambs improved.
Trade Lambs were dearer in all eastern states this week, with NSW topping the charts at 844¢ under the influence of rising new season lamb numbers. In the West, trade lambs slipped 3¢ to 665¢/kg cwt, but the market remains at recent highs. Heavy lambs also held their weight this week, with the National Heavy Lamb Indicator up 9¢ week on week to 847¢/kg cwt, the strongest it’s been since mid-July.
Light lamb prices have on average risen 26¢ in the last month and saw a slight uptick this week. This could in part be driven by restocker activity at the light end of the market, particularly from buyers in NSW that have the opportunity to put them back onto a good bank of spring feed. The ME bag lamb market is the other supporter, and this was noted in Bendigo sale reports as a segment that did sell well this week. For the year to August, we have already sent more lamb to the Middle East than the full 2023 calendar year and have sent 32% more lamb over January to August than the record year of 2018.
Next week
With large volumes of light lambs expected to hit the market this spring, strong Middle Eastern demand and some restocking interest will help to ease the pressure to come. As mentioned in this week’s analysis without a decent turnaround in restocking interest a wider spread is likely to open up between restocker and store lambs. The two-week rainfall forecast is looking promising for Victoria and eastern NSW, but we won’t hold our breath until it hits the ground.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Data sources: MLA, BOM, Mecardo
Categories
Have any questions or comments?
Prices improve again as supply begins to ramp up
New season lambs continue to creep to the yards, and buyers are beginning to ramp up competition. Supply in the south is starting to ratchet
Low flock leads to high priced heavies
The lamb market has so far powered through spring at record levels, as a seasonally contracted lamb crop and historically high demand keep the momentum
Lamb lifts despite market rush
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,
Taking a punt on merino lambs?
The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
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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.
MEET THE TEAM
Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape.
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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.