Widespread rain on the East Coast helped prices continue their upward trajectory, supported by a decrease in throughput as growers' feed supply concerns further eased. Competition heated up as the market adjusted to the rise in prices seen last week.
All categories across the sheep and lamb
markets followed on from last week’s rises with double-digit price increases. Reports
from major saleyards talk of strong turnouts from processors and buyers as well
as increased competition all helping to support the upward price movement.
Mutton saw the largest increase of the
indicators, with the National Mutton Indicator (NMI) up 34% (53ȼ/kg) to 208ȼ/kg,
surpassing the price rally in early October and to a level not seen since the
end of winter. Restricted supply from the north was a key driver in the
improvement. Wagga saw the largest yarding with close to 20% contribution to
the indicator and an average price 20% above the indicator at 253ȼ/kg due to a
bidding war between two parties.
The Eastern States Trade Lamb Indicator (ESTLI)
was up 7.5% to 529ȼ/kg with all weight ranges for the indicator climbing 30ȼ/kg
or more. The heaviest lambs of the indicator fetched the highest prices with
the 24.1kg – 26kg range averaging 551ȼ/kg. Hamilton saw the most throughput
with 40% (just under 20,000hd) of the indicator volume going through their saleyards.
New season heavy lambs are in strong demand
with the highest prices seen since the spring selling period commenced in
August. Western districts new season lambs hit $196/head on Wednesday only to
be beaten by Wagga which reached $205/head on Thursday. A strong result and
something which should continue as recent weeks of rain will ensure there is
feed around to keep the quality strong, and the capacity of processors remain
high, bolstering demand.
Restocker lambs were up slightly this week (3%)
following the significant (20%) rise from the previous week thanks to the favourable
rainfalls changing the outlook for many farmers in the eastern states and encouragement
from the forward pricing available for January and February. The indicator
finished the week at 405ȼ/kg the highest price since the start of July. Restocker
lamb yardings were down 11% week on week to just over 45,000 head. Ballarat had
the highest yardings but averaged 18ȼ/kg below the national indicator.
Next week
With plenty of water about (too much in pockets) and temperatures starting to rise with the beginning of Summer, some producers may look to cash in on the recent price increases this side of Christmas. However, many will now be confident in being able to meet their feed requirements over the summer months, which will ease some of the seasonal supply pressure.
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
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
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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.
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More rain lifts prices
Next week
With plenty of water about (too much in pockets) and temperatures starting to rise with the beginning of Summer, some producers may look to cash in on the recent price increases this side of Christmas. However, many will now be confident in being able to meet their feed requirements over the summer months, which will ease some of the seasonal supply pressure.
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Data sources: MLA, BOM, Mecardo
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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.
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.
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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.