Lamb market standing on solid ground

Sheep in paddock in NSW, photo by Adele SMith

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.

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Data sources: MLA, BOM, Mecardo

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