Prices improve again as supply begins to ramp up

Flocks of young unshorn lambs seperated, in the sheep yards, from their parents, out the front of the shearing sheds waiting to be shorn, on a small family farm in rural Victoria, Australia

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 higher as lamb throughput increases 11% week on week to 228k head through the yards.  More important was the presence of weight and quality in Victoria this week, which pushed indicators higher as buyers hit the road to buy.

Restockers again continue to up the ante at the yards, and as discussed earlier this week on Mecardo by Jamie Lee Oldfield (read more here), for those that have the grass after months of turnoff, it looks like there is a rush to secure lambs to keep into the new year as trade and heavy lamb prices approach parity. The Eastern States Trade Lamb Indicator (ESTLI) improved 10c higher to 1155c/kg cwt, and Heavy lamb indicators improved 1c to 1159c/kg cwt.

Per MLA saleyard reports, Wagga saw strong exporter competition with the lack of numbers stretching the range of stock bid on wider. Both numbers and quality improved in Ballarat, pushing the market higher. Restockers across the state, and over the border, pushed restocker types higher and northern processor buyers boosted heavy lamb prices. Bendigo also had a larger week-on-week yarding and consistent demand from buyers as prices improved across the broad spectrum of lambs on display.

South Australian price indicators (except for heavy lambs) all saw double-digit improvement, ranging from 24-45c as new season lambs presented in excellent condition in Naracoorte.  The West Australian Trade Lamb indicator improved 38c to 972c/kg cwt.

Next week

The quality of lambs available this week will no doubt reassure the processor end of the buying spectrum, and supply should continue in this manner in the next fortnight. Buyers have been flexible and willing to shift to a lower weight this week, which will likely be a strategy that continues, considering prices are close to parity. 

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Data sources:MLA, Mecardo

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