It was another week of prices moving in the wrong direction for winter. Early reports suggest big yardings at many of the major saleyards was met with erratic buying where once again, quality proved the sticking point for buyers.
Pens of new season lambs have begun appearing in smaller numbers in central NSW and in South Australia. These were sold at a range of $176 to $210/head at Forbes and $158/head at SA Livestock Exchange.
The market was weaker in all eastern states, while Western Australia made improvements. The Eastern States Trade Lamb Indicator lost 55¢ to end the week at 726¢/kg cwt. In WA the trade lamb indicator gained 63¢ to 591¢/kg cwt.
Merino lambs very quickly lost the interest that was present last week in NSW. The NSW Merino Lamb Indicator dropped 185¢ this week to end at 624¢, falling back in line with restocker lamb prices on a ¢/kg basis. The National heavy lamb indicator ended the week 39¢ lower, but is still sitting at a premium to trade lambs in ¢/kg cwt basis.
Demand for mutton sheep was generally weaker, with the National Mutton Indicator (NMI) shedding another 25¢ to 548¢/kg cwt. Although it came close in March this year, this is the first time since September 2020 that the weekly NMI has been under 550¢/kg cwt.
For the week ending the 15th of July east coast lamb yardings lifted 26% on the week prior driven by an addition 27,563 head in NSW. Sheep throughput also increased, but remained at the lower end of the range we would usually expect to see at this point in the season.
Lamb slaughter declined by almost 50,000 head compared to the week prior. There was a 6% lift in the number of sheep slaughtered but this in no way made up for the drop in lambs. Total kill figures were 6% below the five year sesaonal average and 12% lower than the same time last year.
The week ahead….
As covered by Angus Brown in this weeks analysis, the enduring supply of old season lambs this winter is causing prices to fall at a time when we’d usually see them rise. Where the market finds support will depend on how many are left and the timing of new season lambs.
The lamb market has so far powered through spring at record levels, as a seasonally contracted lamb crop and historically high demand keep the momentum
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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Picky buying pulls down prices
Pens of new season lambs have begun appearing in smaller numbers in central NSW and in South Australia. These were sold at a range of $176 to $210/head at Forbes and $158/head at SA Livestock Exchange.
The market was weaker in all eastern states, while Western Australia made improvements. The Eastern States Trade Lamb Indicator lost 55¢ to end the week at 726¢/kg cwt. In WA the trade lamb indicator gained 63¢ to 591¢/kg cwt.
Merino lambs very quickly lost the interest that was present last week in NSW. The NSW Merino Lamb Indicator dropped 185¢ this week to end at 624¢, falling back in line with restocker lamb prices on a ¢/kg basis. The National heavy lamb indicator ended the week 39¢ lower, but is still sitting at a premium to trade lambs in ¢/kg cwt basis.
Demand for mutton sheep was generally weaker, with the National Mutton Indicator (NMI) shedding another 25¢ to 548¢/kg cwt. Although it came close in March this year, this is the first time since September 2020 that the weekly NMI has been under 550¢/kg cwt.
For the week ending the 15th of July east coast lamb yardings lifted 26% on the week prior driven by an addition 27,563 head in NSW. Sheep throughput also increased, but remained at the lower end of the range we would usually expect to see at this point in the season.
Lamb slaughter declined by almost 50,000 head compared to the week prior. There was a 6% lift in the number of sheep slaughtered but this in no way made up for the drop in lambs. Total kill figures were 6% below the five year sesaonal average and 12% lower than the same time last year.
The week ahead….
As covered by Angus Brown in this weeks analysis, the enduring supply of old season lambs this winter is causing prices to fall at a time when we’d usually see them rise. Where the market finds support will depend on how many are left and the timing of new season lambs.
Have any questions or comments?
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Data sources: MLA, Mecardo
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Have any questions or comments?
Prices improve again as supply begins to ramp up
New season lambs continue to creep to the yards, and buyers are beginning to ramp up competition. Supply in the south is starting to ratchet
Low flock leads to high priced heavies
The lamb market has so far powered through spring at record levels, as a seasonally contracted lamb crop and historically high demand keep the momentum
Lamb lifts despite market rush
Strong processor demand for new season lambs and rain falling in the southeast of the country put the lamb market in the green this week,
Taking a punt on merino lambs?
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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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.