Despite an encouraging price outlook for late Autumn and Winter, the market continues to slide lower. It isn’t surging saleyard throughput that’s to blame. The number of lambs and sheep yarded over the last two weeks has been below five-year average levels. However, the number of stock going to processors is ample for the time being and it’s allowing prices to ease.
The
Eastern States Trade Lamb Indicator (ESTLI) lost 19¢ over the week, falling
back under the 600¢ mark to 593¢/kg cwt. Trade lamb supply was slightly
stronger in what was reported as a volatile market. In WA, trade lamb prices
also took a hit, dropping 46¢ to 455¢/kg cwt.
Restocker
presence in the market has dried up in recent weeks, in tandem with the season.
The National Restocker Lamb Indicator has fallen 120¢/kg cwt, or 19% since the
beginning of February. It’s currently sitting at 508¢/kg cwt which is 7¢ above
the same time last year. Wagga had the largest yarding again of restocker lambs
this week, with a lift in supply driving prices lower.
The
year-on-year price change of finished lambs versus restocker lambs paints an
interesting picture of the change in dynamics this season. Trade and heavy lamb
prices are currently sitting at 15% and 13% lower than this time last year.
That’s despite a tighter supply outlook. Restocker lambs however are sitting 1%
higher year-on-year.
A decline
in saleyard mutton throughput lent to some stability in price in the face of a
generally weaker market. The National Mutton Indicator is sitting at 221¢/kg cwt,
which is 85¢ lower year-on-year.
Next week
Forward contracts released for late autumn and winter point to plenty of upside for prices compared to current saleyard values. Tightening lamb supply gradually starts from this point in the season if you look at history, however, we will need to see rain on the ground first.
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
Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
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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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Prices slipping despite the positive outlook
Next week
Forward contracts released for late autumn and winter point to plenty of upside for prices compared to current saleyard values. Tightening lamb supply gradually starts from this point in the season if you look at history, however, we will need to see rain on the ground first.
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Data sources: MLA, Mecardo
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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.