sheep_033

Back to business, and the saleyards have seen stock flood the yards. The sharks were circling as the mutton momentum continued.

Indicators took the elevator up, and it’s evident that processors are ramping up the pressure at the rail per MLA saleyard reports.  In Wagga, good quality lambs got bidders competing fiercely, and quality didn’t matter too much for those in the mutton market with exceptional demand across the board. Northern and southern processors also clashed in Ballarat, with the pick of the heavy mutton pens fetching over 700c/kg cwt. 

The end result was a 63¢ improvement in the National Mutton Indicator (NMI), which finished the week at 625¢/kg cwt. Across the country, the mutton momentum has been present. NSW mutton is leading the pack at 671¢/kg cwt, where weight and consistency have been easier to access (given seasonal conditions). Victorian mutton markets are still one of the boats lifted by the rising tide at 611¢/kg cwt.

Restocker lambs lost 4¢ for the week but are sitting at 805¢/kg cwt. With the rampant competition from export and processor buyers and an autumn break yet to arrive, restocker buyers will bide their time. The Eastern States Trade Lamb Indicator (ESTLI) improved 20¢ to 852¢/kg cwt.

This week on Mecardo, Jamie-Lee Oldfield discussed the likelihood of stability ahead for lamb markets (read more here). Typically, the winter peak in pricing is Mid July and the average price isn’t too far off where we sit now, but some extra upside could appear if the lack of rainfall in the south equates to a significant decline in lambs hitting the right specifications before sucker season begins.

Next week

Not much rain forecast for the next fortnight might motivate more stock from down south to come forward, and those offloading stock with weight will likely be rewarded in the short term. How high can mutton markets go?  

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Data sources: MLA, Mecardo

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