The lamb market took its second hit for spring this week, with large price falls for finished lambs. Supply continues to move erratically, with producers responding to any weakness in the market and many processors challenged to plan by the current environment.
The Eastern States Trade Lamb Indicator (ESTLI) fell 47¢ to 853¢kg cwt, coming under significant pressure towards the end of the week. The ESTLI is still sitting 58¢ higher than the same time last year however. The Western Australian Trade Lamb Indicator gained 28¢ to 748¢/kg cwt, sitting 87¢ higher than the same time last year.
The appetite for restocker lambs was weaker in all states and the National Restocker Indicator dropped 25¢/kg cwt to 935¢/kg cwt. Heavy lambs ended the week 47¢ lower at 852¢/kg cwt. Light lambs and Merinos were best supported but still fell 1¢ and 7¢ respectively.
Sheep prices improved in the West which helped lift the National Mutton Indicator 6¢ higher to 615¢/kg cwt. Mutton is cheaper than the same time last year in all eastern states, but in WA producers are fetching an additional 70¢ compared to 12 months ago.
Sheep slaughter lifted last week, and it looks as though sheep are taking up some space on the kill floor from lambs. East coast lamb slaughter has been zig-zagging for about six weeks now, and last week was a zag. Lamb slaughter dropped 10% on the week prior, 21% below five-year average levels.
Eas coast lamb throughput also dropped 10% last week to see 193,099 lambs yarded. All states in the east contributed to the fall. The total number of lambs yarded last week was slightly above average levels, largely driven by strong throughput in NSW which is making up for lower than average supply in Victoria. It was a different story in the West though, where extra supply flowed through to a 49% jump in lamb yardings.
It was a light week for sheep yardings as well with just 65,147 head yarded in the east. This was a 30% drop on the week prior, and 25% below the same time last year.
The week ahead….
It won’t be long now before lambs south of the divide start to flow which will really test Victoria’s processing capacity. We might see some producers hold back lambs again next week and entice a bounce but there’s likely still downside ahead of us.
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.
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.
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.
Pressure strikes twice
The Eastern States Trade Lamb Indicator (ESTLI) fell 47¢ to 853¢kg cwt, coming under significant pressure towards the end of the week. The ESTLI is still sitting 58¢ higher than the same time last year however. The Western Australian Trade Lamb Indicator gained 28¢ to 748¢/kg cwt, sitting 87¢ higher than the same time last year.
The appetite for restocker lambs was weaker in all states and the National Restocker Indicator dropped 25¢/kg cwt to 935¢/kg cwt. Heavy lambs ended the week 47¢ lower at 852¢/kg cwt. Light lambs and Merinos were best supported but still fell 1¢ and 7¢ respectively.
Sheep prices improved in the West which helped lift the National Mutton Indicator 6¢ higher to 615¢/kg cwt. Mutton is cheaper than the same time last year in all eastern states, but in WA producers are fetching an additional 70¢ compared to 12 months ago.
Sheep slaughter lifted last week, and it looks as though sheep are taking up some space on the kill floor from lambs. East coast lamb slaughter has been zig-zagging for about six weeks now, and last week was a zag. Lamb slaughter dropped 10% on the week prior, 21% below five-year average levels.
Eas coast lamb throughput also dropped 10% last week to see 193,099 lambs yarded. All states in the east contributed to the fall. The total number of lambs yarded last week was slightly above average levels, largely driven by strong throughput in NSW which is making up for lower than average supply in Victoria. It was a different story in the West though, where extra supply flowed through to a 49% jump in lamb yardings.
It was a light week for sheep yardings as well with just 65,147 head yarded in the east. This was a 30% drop on the week prior, and 25% below the same time last year.
The week ahead….
It won’t be long now before lambs south of the divide start to flow which will really test Victoria’s processing capacity. We might see some producers hold back lambs again next week and entice a bounce but there’s likely still downside ahead of us.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, NLRS, Mecardo.
Categories
Have any questions or comments?
Lamb market standing on solid ground
Saleyard lamb and sheep throughput continue to track down slightly, with wild weather no doubt stalling some numbers in the south this week. As a
Not all restocker lambs are equal
Of course not all restocker lambs are equal. In this sense, we are looking at restocker lamb indicators and trying to decipher which we should
Wagga walks ahead of the pack
The final selling week of winter was largely flat, with some small gains in value. Supply from the paddock to the saleyard was down slightly
Will southern rain cause a stir
Rain is in the gauge and on the radar for southern sheep regions that have been in desperate need of a drink. While it hasn’t
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.
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.