Eastern state’s
trade lamb throughput was just under 64K head through the yards this week, a 13%
week-on-week increase. This resulted in the indicator (ESTLI) declining 34¢ to
432¢/kg cwt, a 7% decline week on week. In
the West, the WA Trade Lamb Indicator dropped 23¢ to sit at 322¢/kg cwt on the
back of a 71% uplift in supply after a fortnight of relatively low throughput.
Heavy lamb
supply nationally was stable week on week at around 46K head, but throughput
was 18% lower than the first week of August.
The easing of heavy lamb supply has not stemmed the impact of softening
demand, as the national Heavy Lamb Indicator lost 20¢ to finish at 456¢/kg cwt.
Restocker
lambs had an interesting week on the East Coast, as NSW and Victoria had
differing fortunes despite rainfall reaching around the Great Dividing Range in
both states last week (See Figure 2). In
NSW, restocker spec lamb throughput increased 9% and the NSW indicator increased
64¢ to 294¢/kg cwt however in Victoria, buyers did not have the same confidence
as the Victorian indicator for restocker lambs declined 45¢ to 285¢/kg cwt.
The
National Mutton Indicator (NMI) dropped under the 200¢ mark, falling 8% week on
week to 188¢/kg cwt. This was driven by a lift in total sheep yardings, which increased
5% week on week based on initial NLRS reports.
The East and West Coast saleyards are swimming in Mutton, with weekly
yardings nationally more than double the same week last year. WA mutton yardings reached 9K head, the
highest figure since March this year. It
was a 65% week-on-week increase and a 149% higher year-on-year.
Slaughter
last week nationally remains elevated, as sheep slaughter was 36% higher year
on year and lamb slaughter was 10% higher year on year. With yardings again elevated this week, it is
likely the processors will be busy again next week.
Out with the old in with the new?
Next week
Those who aren’t looking to take on more lambs back to the paddock will be hoping that processors can absorb what’s to come. Spring brings elevated supply and new season lamb numbers are only going to increase.
Mutton exports year to July are up 53% year on year, and we have sent over 51 000 tonnes swt to China (96% more than last year). This trade relationship has been and will be a critical release valve for mutton supply and the continued easing of mutton prices will likely see prioritisation in this direction by processors in the next few weeks.
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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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