A decline in lamb numbers helped the market to switch direction and drive prices higher. Store lamb demand was notably stronger in key saleyards this week, with quality also improving in the south.
A few saleyards in Victoria report that new season lamb
numbers are now making up the greater share of lamb throughput, as the tail end
of old lambs wanes. In Bendigo and Ballarat, the increase in store demand for
new lambs under 20kg saw some pens up to $15 dearer than a week ago. We will
get an idea of how lamb supply will flow into the new year from MLA’s sheep
producer intentions survey which is now open (click
here).
NSW and WA saw the greatest week-on-week jump in restocker
lamb values. NSW restockers sold to an average price of 781¢ after a 17% or
113¢ lift on the week, the highest we have seen this restocker lambs in NSW
this year. In WA, restocker prices aren’t quite at their peak for the year to
date but did jump 96¢ or 27% in a week to 446¢/kg cwt.
Tighter supply of finished lambs got buyers moving. The
Eastern States Trade Lamb Indicator gained 35¢ (5%) on the week to 794¢/kg cwt.
A stark contrast to this time last year when trade lambs were selling at around
$3/kg cheaper. Heavy lamb prices also
improved, with the National Indicator up 18¢ week-on-week to 792¢/kg cwt and
consistently dearer in all states.
What didn’t change direction this week was the mutton
market. Saleyard throughput was fairly unchanged this week according to early
NLRS yardings reports and prices were slightly weaker. The National Mutton
Indicator dropped 5¢ on the week to 285¢/kg cwt. Last week sheep slaughter
broke another record for this year, with 223,291 head processed across the
country. With this being 27% higher than 12 months ago, it’s little wonder
there is extreme pressure on mutton values at the moment.
Next week
While the south-east didn’t get much of a drink in the last week, southern WA received some good falls. Looking at the week ahead the forecast isn’t too promising, but the longer-term fortnightly view appears more encouraging at this stage.
If seasonal conditions remain dry, supply will inevitably increase to see prices easing across the board. We think it will be gradual though, as this week showed that producers will hesitate to sell in a steeply falling market.
Australian sheepmeat exports were lifted in September but remained below year-ago and five-year average volumes on the back of lower domestic slaughter and global trade
The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
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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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New season lambs steal the spotlight
A few saleyards in Victoria report that new season lamb numbers are now making up the greater share of lamb throughput, as the tail end of old lambs wanes. In Bendigo and Ballarat, the increase in store demand for new lambs under 20kg saw some pens up to $15 dearer than a week ago. We will get an idea of how lamb supply will flow into the new year from MLA’s sheep producer intentions survey which is now open (click here).
NSW and WA saw the greatest week-on-week jump in restocker lamb values. NSW restockers sold to an average price of 781¢ after a 17% or 113¢ lift on the week, the highest we have seen this restocker lambs in NSW this year. In WA, restocker prices aren’t quite at their peak for the year to date but did jump 96¢ or 27% in a week to 446¢/kg cwt.
Tighter supply of finished lambs got buyers moving. The Eastern States Trade Lamb Indicator gained 35¢ (5%) on the week to 794¢/kg cwt. A stark contrast to this time last year when trade lambs were selling at around $3/kg cheaper. Heavy lamb prices also improved, with the National Indicator up 18¢ week-on-week to 792¢/kg cwt and consistently dearer in all states.
What didn’t change direction this week was the mutton market. Saleyard throughput was fairly unchanged this week according to early NLRS yardings reports and prices were slightly weaker. The National Mutton Indicator dropped 5¢ on the week to 285¢/kg cwt. Last week sheep slaughter broke another record for this year, with 223,291 head processed across the country. With this being 27% higher than 12 months ago, it’s little wonder there is extreme pressure on mutton values at the moment.
Next week
While the south-east didn’t get much of a drink in the last week, southern WA received some good falls. Looking at the week ahead the forecast isn’t too promising, but the longer-term fortnightly view appears more encouraging at this stage.
If seasonal conditions remain dry, supply will inevitably increase to see prices easing across the board. We think it will be gradual though, as this week showed that producers will hesitate to sell in a steeply falling market.
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Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
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Exports find support in September
Australian sheepmeat exports were lifted in September but remained below year-ago and five-year average volumes on the back of lower domestic slaughter and global trade
Bounce back in market as lamb supply slows
Sheep and lamb supply fell away again this week prompting a significant boost to the market right across the board. National indicators rose up to
Lessons from weekly slaughter
The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
Holding pattern ahead of the long weekend.
With the impending long weekend in NSW, the market was in a bit of a holding pattern this week, as most of the major indicators
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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.
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.