The lamb market extended its state of calm for another week, with the key price indicators barely budging. The underlying higher supply combined with stable prices is positive, but the threat of extended Covid processing restrictions in Victoria looms large.
Processors took it up a notch last week with an additional 17K lambs slaughtered on the east coast (6% lift). Victoria was responsible for much of the rise, but the state is still yet to process at the full capped capacity under restrictions. That space was made available by low sheep supply. While there was a minor lift in east coast sheep slaughter for the week, up just 1 per cent, it’s still 45% under last year’s levels.
As reported by Angus Brown this week “with slaughter rising and prices rising, it suggests the market might have found a level where it can be moved into export markets”. Yardings for the week ending the 4th of September certainly reinforced the message with lamb prices holding despite a 47% jump in yardings. The lift in sheep yarding’s was nearly on par, with 37% more sheep running through yards.
There was little to no movement in the Heavy, Merino and Trade lamb indicators this week. The Eastern States Trade Lamb Indicator (ESTLI) dropped just 1¢ to 681¢/kg cwt. WA’s Trade Lamb Indicator took a turn lower, ending Thursday 28¢ lower than last week at 599¢/kg cwt.
Restockers and light lambs received interest this week, with both national indicators gaining about 20¢. The National Mutton Indicator saw a 6¢ loss on the week to 525 which isn’t far from month ago levels. However, lack of demand for sheep in Victoria saw mutton prices there back 37¢ on the week.
The week ahead….
Things will start to get interesting when the spring supply down south pushes processors in Victoria to their capped processing capacity. The BOM is tipping a very wet few weeks ahead with >50% chance of above median rainfall forecast for all except WA. If this proves accurate, there will be plenty of pasture about on the east coast, giving producers the option to add some more weight to lambs when the market eases.
Australia’s total sheepmeat exports dropped 3% year-on-year for the month of May but remains 1% above 2024 for the year-to-date. Trump and all his tariff
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.
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.
Mutton much to see here
Processors took it up a notch last week with an additional 17K lambs slaughtered on the east coast (6% lift). Victoria was responsible for much of the rise, but the state is still yet to process at the full capped capacity under restrictions. That space was made available by low sheep supply. While there was a minor lift in east coast sheep slaughter for the week, up just 1 per cent, it’s still 45% under last year’s levels.
As reported by Angus Brown this week “with slaughter rising and prices rising, it suggests the market might have found a level where it can be moved into export markets”. Yardings for the week ending the 4th of September certainly reinforced the message with lamb prices holding despite a 47% jump in yardings. The lift in sheep yarding’s was nearly on par, with 37% more sheep running through yards.
There was little to no movement in the Heavy, Merino and Trade lamb indicators this week. The Eastern States Trade Lamb Indicator (ESTLI) dropped just 1¢ to 681¢/kg cwt. WA’s Trade Lamb Indicator took a turn lower, ending Thursday 28¢ lower than last week at 599¢/kg cwt.
Restockers and light lambs received interest this week, with both national indicators gaining about 20¢. The National Mutton Indicator saw a 6¢ loss on the week to 525 which isn’t far from month ago levels. However, lack of demand for sheep in Victoria saw mutton prices there back 37¢ on the week.
The week ahead….
Things will start to get interesting when the spring supply down south pushes processors in Victoria to their capped processing capacity. The BOM is tipping a very wet few weeks ahead with >50% chance of above median rainfall forecast for all except WA. If this proves accurate, there will be plenty of pasture about on the east coast, giving producers the option to add some more weight to lambs when the market eases.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
Categories
Have any questions or comments?
Aussie lamb still leaping overseas
Australia’s total sheepmeat exports dropped 3% year-on-year for the month of May but remains 1% above 2024 for the year-to-date. Trump and all his tariff
Back to the paddock, lambs start to surge
The rise and rise of the sheep and lamb market over the past month has all Meat & Livestock Australia price indicators sitting at between
How long will the peak last
Lamb prices were literally off the charts last week. You know the market is doing extraordinary things when you have to increase the scale on
Big week for big lambs
Heavy lamb price records tumbled this week in Victoria as we approach the home straight on heavy lamb supply. It wasn’t just the heavy weights
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.