Mutton prices reached lows not seen since 2008 in the West this week, but thankfully some markets were kinder than others and trade lamb prices received a much needed lift. The market now looks to the rain radar for direction.
The Eastern State Trade Lamb Indicator (ESTLI) improved 20¢ to 450¢/kg cwt this week with saleyard supply steady at 65K head. Similarly, the West Coast tracked sideways for trade lamb supply which was met with fervour from the market as the West Australian Trade Lamb Indicator (WATLI) improved 97¢ to finish the week at 419¢/kg cwt.
Restocking demand remains latent as the wait for rainfall continues in the east. Despite supply only 100 head less than last week the National Restocker Lamb Indicator lost 29¢ to sit at 245¢/kg cwt. This decline was largely driven by saleyard results in NSW. NSW restocker lambs lost 52¢ to 240¢/kg cwt whereas south of the Murray River, Victorian restocker lambs lost just 2¢ to 284¢/kg cwt. Finished lambs tracked sideways as the National Heavy Lamb Indicator remained unchanged at 454¢/kg cwt.
Mutton throughput to the yards was up 7% this week to 81K and with plenty to choose from buyers took advantage and the mutton slide continued. The National Mutton Indicator (NMI) lost 50¢ to 137¢/kg cwt. The WA mutton indicator lost 34¢ to sit at 92¢/kg cwt, which is the lowest mutton saleyard prices have been in Western Australia since 2008.
Merino lambs did not fare much better with the national indicator losing 60¢ to finish at 237¢/kg cwt. This was despite an 11% drop in throughput nationally week on week. Merino lambs are now 55% lower year-on-year.
Preliminary reports this week have total lamb yardings down 23% week on week. This was largely driven by NSW lamb supply which was down 27% week on week. Strong slaughter momentum continues with lamb slaughter down just 1% week on week for the week ending 1st September. Sheep slaughter last week was up 4% week on week.
Next week
With initial reports from MLA suggesting sheep slaughter is picking up the pace this week the mutton performance at saleyards next week will provide an indication as to the processor and export demand for cheaper protein. Will supply chain margin and exporter demand provide support or will processors shift focus to the spring lambs ahead?
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
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
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.
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.
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 on a shoestring
Next week
With initial reports from MLA suggesting sheep slaughter is picking up the pace this week the mutton performance at saleyards next week will provide an indication as to the processor and export demand for cheaper protein. Will supply chain margin and exporter demand provide support or will processors shift focus to the spring lambs ahead?
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?
Buyers are back baby
The lamb and sheep markets were back in full swing following last week’s shorter selling week. Most notable were the buyers, pushing prices up across
How do the size of yardings move prices in Wagga
Talk to any farmer or local agent, and they will tell you that local supply has an impact on local prices. Many a grower will
International sheep meat supply and lamb prices
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
44% drop in supply springs market into action
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
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.
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.
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.