Saleyard supply slipped back this week which forced buyers to increase their bids and sent the lamb market higher. Presentation of good quality new season lambs has also attracted competition and helped spur on the improvement.
The
Eastern States Trade Lamb Indicator (ESTLI) lifted to 497¢/kg cwt, which was a
40¢ gain on the week prior. This is 21% or 85¢ higher than the recent low of
412¢ back in early September. In the West trade lambs lost some ground, falling
22¢ week on week to 360¢/kg cwt.
Processors
appetite for heavy lambs has also been on a rising trend. In Victoria heavy
lambs improved 37¢ on the week, while in NSW they were up 25¢. Heavy lambs in
both these states are now averaging over 500¢/kg cwt.
Restocker
lamb prices continue to improve. Particularly in Victoria where the season has
been kind to many and there is more feed around. The Vic restocker indicator
gained 29¢ on the week to 426¢. This is much improved from the low 284¢ reached
not that long ago. In NSW the southern and northern divide in seasonal
conditions is creating a mixed market for restocker lambs. In Wagga, which this
week saw the largest throughput of restocker lambs, they fetched 460¢ on
average. However, with restocker lambs priced much cheaper in other selling
centres, the NSW indicator this week sat at 378¢ after gaining 20¢ over the
week.
The
positive momentum has also built for light lambs which this week were up 55¢ to
411¢/kg cwt nationally. Early yardings reports are showing lamb throughput
nationally was around 24% lower this week compared to last. With about 164k
head yarded, this level Is below both the same time last year and average
levels.
Despite sheep
throughput being well back on the week prior, there was little joy for those
selling sheep with the National Mutton Indicator sliding back down another 10¢
to see it settle at 106¢/kg cwt.
Next week
The
trajectory of lamb prices over the last seven weeks has been mostly up, which
is hopefully a sign that the market had overcorrected. At the lows of price
that we have seen recently, southern restockers and traders may also be seeing
the opportunity to be found from cheap buy prices. Supply will only increase
from here which will test the improvement we’ve seen.
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
Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
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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.
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New season lambs attract more energetic buying
The Eastern States Trade Lamb Indicator (ESTLI) lifted to 497¢/kg cwt, which was a 40¢ gain on the week prior. This is 21% or 85¢ higher than the recent low of 412¢ back in early September. In the West trade lambs lost some ground, falling 22¢ week on week to 360¢/kg cwt.
Processors appetite for heavy lambs has also been on a rising trend. In Victoria heavy lambs improved 37¢ on the week, while in NSW they were up 25¢. Heavy lambs in both these states are now averaging over 500¢/kg cwt.
Restocker lamb prices continue to improve. Particularly in Victoria where the season has been kind to many and there is more feed around. The Vic restocker indicator gained 29¢ on the week to 426¢. This is much improved from the low 284¢ reached not that long ago. In NSW the southern and northern divide in seasonal conditions is creating a mixed market for restocker lambs. In Wagga, which this week saw the largest throughput of restocker lambs, they fetched 460¢ on average. However, with restocker lambs priced much cheaper in other selling centres, the NSW indicator this week sat at 378¢ after gaining 20¢ over the week.
The positive momentum has also built for light lambs which this week were up 55¢ to 411¢/kg cwt nationally. Early yardings reports are showing lamb throughput nationally was around 24% lower this week compared to last. With about 164k head yarded, this level Is below both the same time last year and average levels.
Despite sheep throughput being well back on the week prior, there was little joy for those selling sheep with the National Mutton Indicator sliding back down another 10¢ to see it settle at 106¢/kg cwt.
Next week
The trajectory of lamb prices over the last seven weeks has been mostly up, which is hopefully a sign that the market had overcorrected. At the lows of price that we have seen recently, southern restockers and traders may also be seeing the opportunity to be found from cheap buy prices. Supply will only increase from here which will test the improvement we’ve seen.
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Click on graph to expand
Click on graph to expand
Data sources: MLA Mecardo
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Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
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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.
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.
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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.