As expected, record heavy lamb prices making headlines last week meant throughput saw a significant increase this week, but it was the other end of the weight range which felt downward pressure because of it.
Looking at processor demand first, the National Heavy Lamb Indicator actually gained ground this week, lifting 12c/kg to close at just shy of 1060c/kg — yet another new high. And this was on top of saleyard numbers for heavy lambs essentially doubling from the previous week. This meant heavy lambs once again surpassed the trade lamb price, after operating at a discount for the past few weeks. Mutton was the only other major indicator to close the week up, albeit only by less than 2c/kg, and is now just below 672c/kg.
The National Trade Lamb Indicator (NTLI) fell about 19c/kg for the week, but remained above the $10/kg mark at 1030c/kg. In the east it was slightly stronger at 1038c/kg, despite the major contributor being Wagga Wagga, NSW, which only averaged 967c/kg. Ballarat, Vic, on the other hand, had nearly as many trade lambs and averaged 1102c/kg, plus a record for that saleyard of $424 was set for extra heavy lambs.
Restocker lambs lost all the gains they had made in the past three weeks, falling nearly 50c/kg for the week to finish at 883c/kg. Merino lambs fell even further, to sit at 829c/kg, but with only about 17,000 head eligible for the indicator, it had the smallest increase in numbers week-on-week and quality was likely the cause.
Keeping in mind, of course, that all key indicators (including restockers) are now between 90c/kg and 160c/kg stronger than they were a month ago, at significant premiums to year-ago levels and between 25% and 50% higher than the five-year averages.
Total sheep and lamb yardings were above 360,000 for the week, the biggest numbers for the past six weeks and a 150,000 head increase from the previous week. This was on the back of a shorter week, but also a strong indication of producers keen to cash in on the back of the price surge. We’ve also seen the first significant cold snap of the winter in the south, potentially prompting further turnoff. Slaughter was also low.
The week ahead….
The coming week will continue to give us a clearer indication of the supply and demand equation, as some processors are coming up to a mid-winter shutdown and trends settle after both a short week and some record prices.
Australian sheepmeat exports have steamed past their previous financial year record, with our two major markets upping the ante, and both Middle East and South-East
The mid-winter supply squeeze is starting to show in the sheep and lamb market, with last week’s slaughter and this week’s total physical yardings trending
The Meat and Livestock Australia (MLA) and Australian Wool Innovation (AWI) Sheep Producer Intentions Survey (SPIS) was released last week, and the results were interesting,
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Lambs rally slows but stays above $10
Looking at processor demand first, the National Heavy Lamb Indicator actually gained ground this week, lifting 12c/kg to close at just shy of 1060c/kg — yet another new high. And this was on top of saleyard numbers for heavy lambs essentially doubling from the previous week. This meant heavy lambs once again surpassed the trade lamb price, after operating at a discount for the past few weeks. Mutton was the only other major indicator to close the week up, albeit only by less than 2c/kg, and is now just below 672c/kg.
The National Trade Lamb Indicator (NTLI) fell about 19c/kg for the week, but remained above the $10/kg mark at 1030c/kg. In the east it was slightly stronger at 1038c/kg, despite the major contributor being Wagga Wagga, NSW, which only averaged 967c/kg. Ballarat, Vic, on the other hand, had nearly as many trade lambs and averaged 1102c/kg, plus a record for that saleyard of $424 was set for extra heavy lambs.
Restocker lambs lost all the gains they had made in the past three weeks, falling nearly 50c/kg for the week to finish at 883c/kg. Merino lambs fell even further, to sit at 829c/kg, but with only about 17,000 head eligible for the indicator, it had the smallest increase in numbers week-on-week and quality was likely the cause.
Keeping in mind, of course, that all key indicators (including restockers) are now between 90c/kg and 160c/kg stronger than they were a month ago, at significant premiums to year-ago levels and between 25% and 50% higher than the five-year averages.
Total sheep and lamb yardings were above 360,000 for the week, the biggest numbers for the past six weeks and a 150,000 head increase from the previous week. This was on the back of a shorter week, but also a strong indication of producers keen to cash in on the back of the price surge. We’ve also seen the first significant cold snap of the winter in the south, potentially prompting further turnoff. Slaughter was also low.
The week ahead….
The coming week will continue to give us a clearer indication of the supply and demand equation, as some processors are coming up to a mid-winter shutdown and trends settle after both a short week and some record prices.
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Data sources: Meat & Livestock Australia; Mecardo
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Have any questions or comments?
Onwards and upwards except for supply
High tide marks get higher as buyers are not keen to miss out on the big boy lambs still around. Its good going for those
Aussie sheepmeat hot property in Asia
Australian sheepmeat exports have steamed past their previous financial year record, with our two major markets upping the ante, and both Middle East and South-East
Lamb lift continues despite market rush
The mid-winter supply squeeze is starting to show in the sheep and lamb market, with last week’s slaughter and this week’s total physical yardings trending
Some surprising numbers in sheep survey data
The Meat and Livestock Australia (MLA) and Australian Wool Innovation (AWI) Sheep Producer Intentions Survey (SPIS) was released last week, and the results were interesting,
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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.