Preliminary yardings data from MLA show this week set records across the
majority of saleyards in the nation, as farmers act swiftly on the recent price
rises before the year-end shutdown. The yards even “overflowed with animals” at
Wagga according to the sales report. It was the lambs driving this increase up
16% to 342k the highest since this time in 2021. Sheep were down on last week
by 27% to 129k.
The National Mutton Indicator (NMI) was the
only national indicator to not have an increase in price week on week, falling
22% to 164 c/kg. Wagga was a major contributing factor, as it made up 26% of
the throughput, but averaged 20% lower than the NMI at 132 c/kg. The saleyard
report suggested demand from buyers was sporadic and the upcoming abattoir
closures for the year-end break had a significant impact on price.
The Eastern States Trade Lamb Indicator
(ESTLI) had another strong week of price increases, up 47c/kg to 647 c/kg. The
ESTLI is up 38% (177 c/kg) on this time last month, back to price levels not
seen since early May this year. The top contributing yards all reported a large
turnout from buyers, which saw increased competition which pushed the price up.
Despite the West Coast missing out on most
of the rainfall that has fallen on the East Coast in the past month, the trade
lamb market has held up. Trending in line with the ESTLI rally over the last
few weeks. Prices for trade lambs in WA are up 48% (157 c/kg) from the lows in
late October. This week saw the trend end with trade lambs in the west falling 6%
(33 c/kg) to 488 c/kg, putting the west 24% behind the East coast prices.
Mutton in the West hasn’t had the same
rally, with prices not recovering as they have in all other indicators. The
Western Mutton Indicator remains at a 10-year low of 66 c/kg, 61% behind the
East Coast mutton price as processors prioritise lambs in the lead-up to Christmas.
Lamb price rally continues
Next week
A disrupted week with some saleyards not operating will see a reduction in total yardings and a more mixed market if some buyers are set with their requirements over the next few weeks. There is also some rain forecast for next week which should continue to support the improving market sentiment of farmers.
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Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
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Have any questions or comments?
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