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Total sheep and lamb saleyard throughput fell this week, and so did most price indicators, as plenty of supply, proximity to holiday processor shutdowns, and the arrival of summer put pressure on the market. Mutton was the odd one out, with about 15,000 fewer sheep through the indicator giving it a bump upwards, and there were still reports of strong demand for lambs to head back to the paddock.

Good news first, the national mutton price lifted 13¢/kg to 765¢/kg and is now the only major indicator sitting above month-ago levels. East coast mutton averaged slightly higher at 776¢/kg, while it was 717¢/kg in the west. The weekly rolling indicator headcount was about 88,000 head, roughly 7000 fewer than the same time last year. Wagga Wagga, NSW, had the largest yarding, and the National Livestock Reporting Service quoted heavy mutton as topping at $322, with strong northern competition, while trade prices fluctuated depending on quality and wool length.

Heavy lamb numbers increased by about 3800 head, and the national price lost more than 25¢/kg for the week, putting it 56¢/kg lower than the month prior. The price remains 38% higher than the five-year average, but at 19% above year-ago levels, it is at the lowest year-on-year premium since February. Lamb export figures for November were 3% lower year-on-year but still historically very strong, so the heavy lamb price pressure is predominantly from the seasonal supply side of the equation.

Restocker lamb indicator throughput jumped by nearly 5700 head this week, and considering this, the price held up relatively well, only losing 8¢/kg for the week to land at 1097¢/kg. With just shy of 73,000 head through the indicator this week, this was about 19,000 more than the same time last year, yet the price sits at a 370¢/kg premium year-on-year. Wagga Wagga again had the major yarding, with more than a quarter of the indicator throughput, and the NLRS reported the lamb sale as “store-like”, with a large portion of the yarding below 22kg and restocker buying support buoying the market.

Trade lambs lost 20¢/kg this week to average 1075¢/kg. Hamilton, Victoria, had a third of all indicator-eligible stock and sold at 1056¢/kg, which was still 13¢/kg below the Victorian average. Hamilton’s Wednesday sale had 50,000 lambs, and new-season trade lots topped at $420, while strong restocker and feeder support was reported for the lighter end of new-season trade lambs.

Next week

With only two trading weeks left in the year, and the second of those leading into plenty of public holidays, the market will likely continue to drift lower if strong numbers keep coming in. There shouldn’t be any significant changes to the market dynamics unless widespread significant rain occurs in southern Australia and impacts both sides of the equation.

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Data sources: MLA, Mecardo

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