Restockers finally saw some price response
to the changing sentiment this week, helped along by lower throughput, with
about 12,000 fewer head eligible for the indicator. However, the 50,000
restocker lambs that were sold averaged 394¢/kg, an increase of 70¢/kg for the
week. Nationally it’s the highest restockers have been pricewise since
mid-July.
The remainder of the indicators, excluding
heavy lambs, all lifted between 27¢/kg and 37¢/kg for the week, with national
trade lambs picking up 30¢/kg, to sit just shy of 488¢/kg. The Eastern States
Trade Lamb Indicator is currently nearly 4¢/kg higher, at 491.75¢/kg, but in
comparison only picked up 22¢/kg for the week. Victorian yards are now well and
truly dominating ESTLI throughput, with Hamilton and Ballarat having 26% and
22% of the eligible stock respectively. In NSW it was Wagga Wagga, Carcoar, and
Dubbo that trended well above the average.
Heavy lambs have held relatively firm since
the beginning of October and ended this week at 501¢/kg. Mutton is finally
seeing some more consistent relief, lifting 28¢/kg to 153¢/kg this week, a rise
of 50¢/kg for the month. This was boosted by Wagga Wagga, which had a quarter
of all mutton indicator eligible sheep and traded at an average of 186¢/kg.
Western Australia, on the other, continues to really struggle, with both yards
averaging under 80¢/kg for mutton.
Combined sheep and lamb yardings were at
their third highest level for the year this week, just short of 320,000 head.
These levels have been fairly consistent all month, and it was 9% more sheep
that made up the increase week-on-week. But as we can see from the table both
categories are trending well above year-ago levels, with 61% more lambs in the
yards this week than the same time last year.
Last week’s slaughter volume dropped more
than 20,000 head for lambs but remains in record-high territory at 443,256.
Sheep slaughter also fell by about 16,000 head but remains about 20,000 head
higher year-on-year for the corresponding week.
Lambs are looking up
Next week
If the rain forecast to come across eastern Australia this next week eventuates, the upward momentum of the light and restocker lamb categories, along with potentially mutton, should continue. When it comes to heavy lambs, as long as slaughter can be maintained at its current rate through to Christmas, processors’ January contracts show there shouldn’t be any downward pressure on price as producers push to get lambs off before the holidays.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA,BOM, Mecardo
Categories
Have any questions or comments?
44% drop in supply springs market into action
A short week, and closed saleyards on Thursday has culminated in some relief on the supply front as combined lamb and sheep yardings nationally dropped
Winter is coming, where will lamb land?
While many are focussed on the Anzac Day market of a good autumn break, and whether more rain – or any rain at all for
Sheep meat price volatility
The drop in sheep meat prices in 2023 came as an unwelcome shock after the better part of a decade of rising prices. This article
Light lambs grounded
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
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.
SERVICES AND CAPABILITIES STATEMENT BROCHURE
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.