A “definite transition away from old lambs” was noted in reports from major saleyards this week as new season lamb numbers continue to build. Competition fluctuated and the market was variable amidst a period of disrupted supply due to holidays and extremely wet conditions.
The Eastern States Trade Lamb Indicator ended the week slightly higher, up 2¢ to 737¢/kg cwt. It was a softer market in Victoria but improved week on week prices in both NSW and SA, pulled the indicator up. After hitting a low of 463¢ last week, the Western Trade Lamb Indicator jumped 76¢ higher to 539¢/kg cwt. Even with the improvement, WA lambs are trading at an abnormally large discount to SA.
The National Heavy Lamb Indicator moved lower over the week, down 18¢ to 749¢/kg cwt. Light lambs continued their climb, up 17¢ to 671¢/kg cwt. Merino lambs also trended 17¢ higher week on week. Despite a larger yarding of sheep, the National Mutton Indicator gained 22¢ over the week to finish at 501¢/kg cwt, driven by stronger demand in NSW.
The week ending the 23rd of October was a very short week with the National public holiday and footy final holiday which was reflected in the yardings figures. Just 98,070 lambs and 37,886 sheep were yarded over the week in the east. Early reports from the week just gone show national saleyard lamb throughput of 182,846 head.
Lamb slaughter held fairly strong considering the short week with 279,190 lambs processed. This was a 22% drop on the week prior.
As noted in these weeks cattle analysis, the AUD hit a low of 0.64 US¢ earlier this week, and while it has since returned 0.65, this will support export demand as supplies increase.
The week ahead….
As lamb volumes start to flow more intensely in SA there will be downward pressure on price. Last year it wasn’t until November that numbers really started to swell in Victoria and with another favourable season, we could see similar selling patterns emerge.
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
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
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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.
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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Plenty of variability in price and supply
The Eastern States Trade Lamb Indicator ended the week slightly higher, up 2¢ to 737¢/kg cwt. It was a softer market in Victoria but improved week on week prices in both NSW and SA, pulled the indicator up. After hitting a low of 463¢ last week, the Western Trade Lamb Indicator jumped 76¢ higher to 539¢/kg cwt. Even with the improvement, WA lambs are trading at an abnormally large discount to SA.
The National Heavy Lamb Indicator moved lower over the week, down 18¢ to 749¢/kg cwt. Light lambs continued their climb, up 17¢ to 671¢/kg cwt. Merino lambs also trended 17¢ higher week on week. Despite a larger yarding of sheep, the National Mutton Indicator gained 22¢ over the week to finish at 501¢/kg cwt, driven by stronger demand in NSW.
The week ending the 23rd of October was a very short week with the National public holiday and footy final holiday which was reflected in the yardings figures. Just 98,070 lambs and 37,886 sheep were yarded over the week in the east. Early reports from the week just gone show national saleyard lamb throughput of 182,846 head.
Lamb slaughter held fairly strong considering the short week with 279,190 lambs processed. This was a 22% drop on the week prior.
As noted in these weeks cattle analysis, the AUD hit a low of 0.64 US¢ earlier this week, and while it has since returned 0.65, this will support export demand as supplies increase.
The week ahead….
As lamb volumes start to flow more intensely in SA there will be downward pressure on price. Last year it wasn’t until November that numbers really started to swell in Victoria and with another favourable season, we could see similar selling patterns emerge.
Have any questions or comments?
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Click on graph to expand
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Data sources: MLA, Mecardo
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Have any questions or comments?
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44% drop in supply springs market into action
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
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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.