A large reduction in yardings was not enough to completely sandbag the price falls for all of the indicators this week. Buyers took a break, with multiple saleyard reports mentioning absences in their buying fields. Quality and weight remain the scarce desired specification, with plainer and lighter pens causing erratic price spreads.
The Eastern States Trade Lamb Indicator gained 4% on the
week prior ending the selling week at 817¢/kg. Yardings for the indicator were
down 22% to 30.5k head for the week. Wagga had the largest contribution to the
indicator for the week accounting for 35% of the total volume.
The National Mutton Indicator fell by 7% in value despite a
large decrease of 30% in the yardings for the indicator, it finished the week
at 374¢/kg. Bendigo had the second-largest contribution of volume for the
indicator. Its saleyard report mentions “a lot of winter clean up lots” as
producers take stock of their flock.
New season lambs are starting to make their debut at selling
centres, starting to fill some pens. Demand for the new age lambs seems robust
thanks to a lack of quality and weight being offered currently in the market. Prices
for the new season lambs at Bendigo fetched $235/head, and Forbes was between
$185 – $235/head according to their saleyard reports. In cents/kg terms this is
around 900¢/kg.
Slaughter volume for the week ending the 26th of July rose
on the week before that by 8%, helped by NSW Sheep slaughter levels returning
to the yearly average following two weeks at a 60% reduction. Lamb slaughter on
the East Coast continues its outperformance. The last reported week of
slaughter volumes was up 8% YoY and 34% on the 5-year average.
Initial yardings data from the NRLS show that both lamb and
sheep yardings for the selling week were down by 25%. The tightening of supply isn’t
abnormal at this time of year, as winter enters its final month and producers
run out of stock to sell ahead of the influx of new season lambs.
Next week
Slowly more and more new season lambs will hit the saleyard pens, which should help bring the buyers back to the rail and bidding. This should be supportive of price as demand outpaces supply, but once the new season is in full swing that will flip with more supply than demand.
The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
Australian sheep and lamb exports increased in September but remained subdued in relation to recent trends. The US took dominant market share for the month,
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New season drops trickling in
Next week
Slowly more and more new season lambs will hit the saleyard pens, which should help bring the buyers back to the rail and bidding. This should be supportive of price as demand outpaces supply, but once the new season is in full swing that will flip with more supply than demand.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
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The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
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Australian sheep and lamb exports increased in September but remained subdued in relation to recent trends. The US took dominant market share for the month,
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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.