Saleyard pricing is the little engine that could, trying to coax more lambs out of the woodwork. With spring just around the corner, attention is rapidly turning to the spring outlook.
Lamb and
sheep slaughter is approaching the turn before the home straight, and at
431,411 head last week, combined slaughter nationally had its lowest week since
opening week this year. The drop in
slaughter is in line with typical seasonality, as the job awaits new season
lambs coming to market and the tail end of last year’s lambs find homes.
Across
the indicators, the momentary pause in processor demand did result in a mixed
bag. Light lambs averaged a 24c decline to
959c/kg cwt, and merino lambs eased 6c to 966c/kg cwt. Week on week, trade lamb
qualifying lamb supply at the yards jumped by over 10,000 head, resulting in a
slight easing of the national indicator. The Eastern States Trade Lamb
Indicator (ESTLI) eased 14c to 1105c/kg cwt and the West Australian Trade Lamb
Indicator (WATLI) eased 29c to 1019c/kg cwt.
Heavy
lambs again tracked higher on the back of some record bidding across saleyards
this week, the national heavy lamb indicator improved 16c to 1176c/kg cwt. v
Supply
continues to be the driver behind the recent upward trajectory of pricing, and yardings
have bounced tracked upwards this week as producers look to take advantage of
current fundamentals. Combined lamb and
sheep yardings were 9.8% higher week on week driven mainly by lambs.
With
supply (and lack thereof for some lamb specifications) driving returns at the saleyard
for lamb and sheep markets, Jamie-Lee Oldfield had a look at supply and the
outlook on Mecardo this week (read
more here). National sheep weekly yardings are currently 4% higher than
2019, the last significant drought-induced turn-off. The impact that turn-off
and the availability of grass this year will have on the lamb crop is the big
question as we head into spring.
The week ahead….
The market is on the search for supply, which will come, but how heavy is the main question?
Light lamb indicators are at high levels, and we are approaching higher demand months for export mutton, so the direction that processors will head in when the new season lambs arrive will be very interesting.
The latest ABARES outlook for livestock products has sheepmeat production dropping for the 2025–26 financial year, pushing prices higher and potentially boosting global demand even
Total sheep and lamb saleyard throughput fell this week, and so did most price indicators, as plenty of supply, proximity to holiday processor shutdowns, and
The October Sheep Producer Intentions Survey (SPIS) provides some very important information regarding the number of lambs on the ground, the type of lambs, and
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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.
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.
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.
Prices encouraging stock back into the yards
Lamb and sheep slaughter is approaching the turn before the home straight, and at 431,411 head last week, combined slaughter nationally had its lowest week since opening week this year. The drop in slaughter is in line with typical seasonality, as the job awaits new season lambs coming to market and the tail end of last year’s lambs find homes.
Across the indicators, the momentary pause in processor demand did result in a mixed bag. Light lambs averaged a 24c decline to 959c/kg cwt, and merino lambs eased 6c to 966c/kg cwt. Week on week, trade lamb qualifying lamb supply at the yards jumped by over 10,000 head, resulting in a slight easing of the national indicator. The Eastern States Trade Lamb Indicator (ESTLI) eased 14c to 1105c/kg cwt and the West Australian Trade Lamb Indicator (WATLI) eased 29c to 1019c/kg cwt.
Heavy lambs again tracked higher on the back of some record bidding across saleyards this week, the national heavy lamb indicator improved 16c to 1176c/kg cwt. v
Supply continues to be the driver behind the recent upward trajectory of pricing, and yardings have bounced tracked upwards this week as producers look to take advantage of current fundamentals. Combined lamb and sheep yardings were 9.8% higher week on week driven mainly by lambs.
With supply (and lack thereof for some lamb specifications) driving returns at the saleyard for lamb and sheep markets, Jamie-Lee Oldfield had a look at supply and the outlook on Mecardo this week (read more here). National sheep weekly yardings are currently 4% higher than 2019, the last significant drought-induced turn-off. The impact that turn-off and the availability of grass this year will have on the lamb crop is the big question as we head into spring.
The week ahead….
The market is on the search for supply, which will come, but how heavy is the main question? Light lamb indicators are at high levels, and we are approaching higher demand months for export mutton, so the direction that processors will head in when the new season lambs arrive will be very interesting.
Have any questions or comments?
Click on graph to expand
Data sources: MLA, Mecardo.
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Have any questions or comments?
Production down, but values still to rise
The latest ABARES outlook for livestock products has sheepmeat production dropping for the 2025–26 financial year, pushing prices higher and potentially boosting global demand even
Mutton market maintains momentum
Total sheep and lamb saleyard throughput fell this week, and so did most price indicators, as plenty of supply, proximity to holiday processor shutdowns, and
Survey marking numbers counter high slaughter rates
The October Sheep Producer Intentions Survey (SPIS) provides some very important information regarding the number of lambs on the ground, the type of lambs, and
Lighter lambs dominate supply as prices decline
Supply crept higher this week to 392k head for lamb and sheep through to the yards, and prices retracted as harvest in the south and
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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.