The story of supply has been driving the market since Winter, and demand has been reactive. Last week, there was movement at the station when it came to processor demand as heavier lambs began to appear at the yards in numbers. The momentum pushed prices higher this week
Last week, national lamb slaughter jumped to 438K head, the biggest weekly result since the middle of June and an indication that the lamb buyers want are beginning to arrive in numbers. Whilst this is all in line with seasonal patterns, new season young lambs had been lagging compared with last year, barely surpassing last year and 5-year average levels (figure 2), which had been an issue for demand side buyers. Numbers appear to be moving in the right direction, but still aren’t at the highs you would typically expect, which is assisting pricing.
Diving into MLA saleyard reports, both competition and lamb quality for the most part were improving. A lift in numbers and quality of heavier lambs pushed indicators higher in Wagga this week, with strong competition from processors. Naracoorte saw additional competition for another strong yarding of good lambs. Forbes was the opposite, with fewer numbers, the majority of which were plainer. Ballarat saw restockers and processors competing strongly; meanwhile, the market fluctuated drastically in Katanning and Muchea as numbers and quality declined week on week.
Indicators improved across the board, ranging from the national trade lamb indicator improving 27c to 1091c/kg cwt to the national merino lamb indicator jumping 85c/kg cwt to 980c/kg cwt. Heavy lambs are back over $11/kg cwt, and mutton jumped 48c to 733c/kg cwt.
Sheep and lamb export volumes increased from August to September, but remained lower year-on-year according to Jamie–Lee Oldfield in Mecardo this week (read more here). Export demand remains historically strong; however, China has dialled back imports of Australian sheep meat compared with last year.
The week ahead….
This week’s rain will no doubt be well received, and competition for light lambs has already picked up this week.
The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
Total sheep and lamb yardings fell slightly this week, but it didn’t help prices, with all major indicators ending lower. Restocker lambs and mutton are
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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.
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.
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.
Market kicks as quality starts to arrive
Last week, national lamb slaughter jumped to 438K head, the biggest weekly result since the middle of June and an indication that the lamb buyers want are beginning to arrive in numbers. Whilst this is all in line with seasonal patterns, new season young lambs had been lagging compared with last year, barely surpassing last year and 5-year average levels (figure 2), which had been an issue for demand side buyers. Numbers appear to be moving in the right direction, but still aren’t at the highs you would typically expect, which is assisting pricing.
Diving into MLA saleyard reports, both competition and lamb quality for the most part were improving. A lift in numbers and quality of heavier lambs pushed indicators higher in Wagga this week, with strong competition from processors. Naracoorte saw additional competition for another strong yarding of good lambs. Forbes was the opposite, with fewer numbers, the majority of which were plainer. Ballarat saw restockers and processors competing strongly; meanwhile, the market fluctuated drastically in Katanning and Muchea as numbers and quality declined week on week.
Indicators improved across the board, ranging from the national trade lamb indicator improving 27c to 1091c/kg cwt to the national merino lamb indicator jumping 85c/kg cwt to 980c/kg cwt. Heavy lambs are back over $11/kg cwt, and mutton jumped 48c to 733c/kg cwt.
Sheep and lamb export volumes increased from August to September, but remained lower year-on-year according to Jamie–Lee Oldfield in Mecardo this week (read more here). Export demand remains historically strong; however, China has dialled back imports of Australian sheep meat compared with last year.
The week ahead….
This week’s rain will no doubt be well received, and competition for light lambs has already picked up this week.
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Data sources: MLA, AuctionsPlus, Mecardo
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The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
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Ewe records fall but so does NMI
Total sheep and lamb yardings fell slightly this week, but it didn’t help prices, with all major indicators ending lower. Restocker lambs and mutton are
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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.
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.