Starting with sheep, nearly 6,000 fewer were yarded this week, and the National Mutton Indicator was firm at 767c/kg. In the east, mutton prices continued to improve, up about 6c/kg to 793c/kg. As has been common since more widespread spring rainfall, NSW fared the best, averaging 824c/kg, with Forbes accounting for 20% of the national throughput and averaging 873c/kg.
In the west, mutton averaged 639c/kg, with Katanning having the fourth largest yarding nationally but only averaging 628c/kg, while Muchea performed better at 664c/kg, stronger than both Hamilton in western Victoria and Naracoorte in south-east South Australia. Online, the sheep price dropped 10c/kg to 256c/kg, with nearly 50% of the 17,000 head coming from western NSW, where they averaged 245c/kg. Merino ewes made up the vast majority of the total number.
Heavy lambs felt the most downward pressure, losing nearly 50c/kg nationally to land at 1141c/kg, despite throughput falling. This price is still above month-ago levels and remains more than 50% above the five-year average and 60% above the 10-year price. National Livestock Reporting Service quotes put the fall, which equated to $30/head in some yards, down to lower quality and less demand for old lambs, especially if they were not shorn.
Trade lambs also fell, down 33c/kg to 1160c/kg nationally, with major yards now seeing new season lambs outnumber old stock. Total lamb yardings lifted by nearly 10,000 head from the previous week, but it is interesting to note that September lamb yardings so far (with only two yarding days left) are about 110,000 head fewer than total September yardings last year.
About 60% of all trade lamb indicator eligible stock came out of three NSW yards, being Forbes, Wagga Wagga and Dubbo, and both Forbes and Dubbo averaged above 1200c/kg. The Eastern States Trade Lamb Indicator closed the week at 1163c/kg, while in the west it was 1070c/kg. Merino lambs were the best performers, up 2c/kg and now sitting 112c/kg higher than four weeks ago, at 1079c/kg. Restockers and trade lambs both lost ground, falling 22c/kg and 28c/kg respectively.
Lamb price slips as new season numbers spark up
Next week
We are already a month into spring, and new season lambs are only just starting to present in strong numbers. If good seasonal conditions continue to eventuate, supply should continue to firm, but is still unlikely to catch up to year-ago levels until later in the year. While there has been downward pressure this week, prices are still at historically very high levels, so if they can hold firm, producers will continue to fare well.
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Click on graph to expand
Data sources: MLA, Mecardo
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