Sheep in an Australian field in rural NSW on a foggy morning

The sheep and lamb market showed some resilience this week as yardings backed off slightly but remained at their second-highest level since June. Merino lambs were the only major category to close lower, falling by close to 50¢/kg. NSW maintained a premium over national prices and showed the strongest demand.

Nationally, 197,000 lambs were yarded this week, 17,000 head fewer than the previous seven days, but still historically high. Restocker lambs were the only indicator to record a significant increase in numbers, up nearly 10,000 head, while the price climbed by 17¢/kg to 1042¢/kg. In NSW, the price jumped 40¢/kg to average 1076¢/kg, with Forbes and Carcoar in the Central West sitting at 1187¢/kg and 1145¢/kg respectively.

Commercial sheep and lamb offerings also dipped on AuctionsPlus, with 6% fewer head offered than the previous week, but numbers still sat 33,000 head above the same week last year. Clearance rates improved week-on-week by 5% to 62%, with new season lambs averaging $182/head and restockers $165/head. Reflecting saleyard sentiment, NSW vendors made up the majority of listings and one-third of all purchases.

Trade lambs held firm at 1065¢/kg, though returns were weight-dependent. The 24–26kg lambs lifted 23¢/kg, while the 20–22kg lambs fell 27¢/kg. NSW had the three largest trade lamb yardings, while in Victoria, Bendigo and Ballarat continued to have limited numbers sold in the category, with National Livestock Reporting Service reports noting that lambs are already “drying off in the skins.”

Heavy lambs were also relatively firm in both price and numbers, settling at 1053¢/kg, but are now operating at the lowest year-on-year premium of all major indicators. Mutton, on the other hand, is at the highest premium, closing this week at 682¢/kg, 2¢/kg higher than last week and 386¢/kg stronger than the same time last year. Again, NSW operated at a premium, led by Forbes, which averaged 819¢/kg and recorded the highest throughput at more than 15%. NLRS quoted Merino ewes hitting a top of $273/head.

Next week

More rain is forecast in NSW this weekend, and if it falls, it should be enough to keep supporting the market even as supply remains historically high. Rain has also reached further south, but it may be too late for some new season lambs, meaning producers will either have to offer them below their usual condition or hold them over into the new year. The October long weekend is usually when supply lifts sharply, and all signs indicate the lambs are out there. With MLA reporting new season lamb throughput down 17% year-on-year, we could soon see a swing towards the supply side of the equation.

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Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: MLA, Mecardo, AuctionsPlus

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