New season lambs are light and lack consistency in quality down south, an unfortunate side effect of the dry year. With competition fierce for the ideal stock, buyers are being pushed to other ends of the spectrum to restock paddocks or fill kill space.
It’s 7 weeks till Christmas and supply is ramping up with
indicative NLRS reports stating combined lamb and sheep yardings nationally
have eclipsed 233,000 head this week, (the biggest week since April this year).
Just like the lambs’ presented at saleyards, prices were
mixed this week. Mutton and restocker lamb markets were pushed higher with the
National Mutton Indicator (NMI) improving 21c to 320c/kg cwt and the National
Restocker Lamb Indicator increasing 24c to 740c/kg cwt. The Eastern States Trade Lamb Indicator
(ESTLI) lost 15c to 818c/kg cwt.
WA sheep and lamb markets had another great week with easing
saleyard supply and strong demand from restockers at Katanning supporting the
market. WA trade lambs improved 38c to 636c/kg cwt and restocker lambs
increased 33c to 399c/kg cwt.
The general consensus from east coast MLA saleyard reports
was new season lambs leaning lighter and conditions varying greatly the further
south and west you headed. Condition and quality were ideal at Yass and Forbes,
which saw large numbers of heavy mutton at the yards this week. 30 000 new season lambs were yarded at Wagga however
reports suggested only 50% were in store condition. Ballarat saw processors
competing hard with feeders for lighter lambs, and a wide spread in lamb
quality shifted attention to mutton. In Naracoorte new season lambs presented
in good condition considering the season but were still lacking weight.
Processors have definitely changed tact to sheep in Victoria,
with weekly lamb slaughter tracking lower than last season in five of the last six
weeks. Southern processors have been dealt a hand where they have to chase
sheep which is supporting mutton prices.
Since mid-September, the Victorian Mutton Indicator has jumped 78c or
29%. The last fortnight in particular saw the steepest gains. The Victorian Mutton
Indicator sits at 348c/kg cwt; this was a 35c weekly jump despite a 30%
increase in yardings in Victoria alone.
As investigated on Mecardo this week southern lamb supply
usually lifts strongly in November to peak in mid-December but there is some
uncertainty with the level of supply that is coming, and yet to come, out of
the dry south (read
more here).
Next week
With built-up capacity, processors haven’t got time to be uncertain so sheep will continue to fill the gap left by missing heavier trade lambs.
Q3 livestock production data from the Australian Bureau of Statistics is due this month and should provide more clarity on the number of lambs exiting the south.
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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.
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Mutton plugging the gap
It’s 7 weeks till Christmas and supply is ramping up with indicative NLRS reports stating combined lamb and sheep yardings nationally have eclipsed 233,000 head this week, (the biggest week since April this year).
Just like the lambs’ presented at saleyards, prices were mixed this week. Mutton and restocker lamb markets were pushed higher with the National Mutton Indicator (NMI) improving 21c to 320c/kg cwt and the National Restocker Lamb Indicator increasing 24c to 740c/kg cwt. The Eastern States Trade Lamb Indicator (ESTLI) lost 15c to 818c/kg cwt.
WA sheep and lamb markets had another great week with easing saleyard supply and strong demand from restockers at Katanning supporting the market. WA trade lambs improved 38c to 636c/kg cwt and restocker lambs increased 33c to 399c/kg cwt.
The general consensus from east coast MLA saleyard reports was new season lambs leaning lighter and conditions varying greatly the further south and west you headed. Condition and quality were ideal at Yass and Forbes, which saw large numbers of heavy mutton at the yards this week. 30 000 new season lambs were yarded at Wagga however reports suggested only 50% were in store condition. Ballarat saw processors competing hard with feeders for lighter lambs, and a wide spread in lamb quality shifted attention to mutton. In Naracoorte new season lambs presented in good condition considering the season but were still lacking weight.
Processors have definitely changed tact to sheep in Victoria, with weekly lamb slaughter tracking lower than last season in five of the last six weeks. Southern processors have been dealt a hand where they have to chase sheep which is supporting mutton prices. Since mid-September, the Victorian Mutton Indicator has jumped 78c or 29%. The last fortnight in particular saw the steepest gains. The Victorian Mutton Indicator sits at 348c/kg cwt; this was a 35c weekly jump despite a 30% increase in yardings in Victoria alone.
As investigated on Mecardo this week southern lamb supply usually lifts strongly in November to peak in mid-December but there is some uncertainty with the level of supply that is coming, and yet to come, out of the dry south (read more here).
Next week
With built-up capacity, processors haven’t got time to be uncertain so sheep will continue to fill the gap left by missing heavier trade lambs.
Q3 livestock production data from the Australian Bureau of Statistics is due this month and should provide more clarity on the number of lambs exiting the south.
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?
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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.
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.
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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.