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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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Click on graph to expand

Click on graph to expand

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Data sources: MLA, Mecardo

Have any questions or comments?

We love to hear from you!
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