The mixed quality offering at saleyards continues to split the market. Large price spreads are being reported, with any well-presenting stock attracting a premium. On the whole, the finished lamb market is holding value well.
In WA stronger prices drew lambs and sheep out of the
paddock. With a total yarding of just under 30 thousand head, it was the
biggest week of saleyard throughput since early 2022. While the buying field in
WA was reported as well attended, the influx of supply combined with mixed
quality on offer saw prices lower across all types. Heavy lambs and mutton
faced the greatest falls, down 88¢ and 76¢ week on week respectively.
In all other states, saleyard throughput of both lambs and
sheep was fairly steady week on week according to preliminary MLA reports. Yardings
are still tracking at above-average levels for this point in the season.
The Eastern States Trade Lamb Indicator gained 8¢ on the
week to 823¢/kg cwt and appears to be settled in the +800¢ range while the finished
lamb supply is tight. Well-finished lambs attracted solid competition from
export buyers in Wagga, with heavy lambs picking up an additional 34¢ this week
on average at a National level.
On balance light lamb values gained an additional 2¢ on the
week and are currently sitting almost 300¢ or 85% higher than this point last
year. Merino lambs also met stronger demand this week. Despite a slight lift in
supply this week, the National Merino Lamb Indicator ended the week up 34¢ to
663¢/kg cwt.
While numbers of restocker lambs are always low at this
point in the year, and the winter chill keeps potential buyers away, prices are
“cheap” relative to the rest of the market. Restocker lambs in NSW and VIC were
this week priced at around 580-590¢/kg cwt which puts them at a 40% discount to
trade lambs. This is at the low end of the normal discount range for winter.
This sings opportunity for those who can take them on.
Next week
The factors driving the market are unlikely to shift dramatically in the next few weeks. Quality will remain hard to find and it will be some time before the new season lamb numbers make an impact. As reported in this week’s analysis (read here) the spring market outlook appears positive, but as always rain will ultimately determine the outcome.
The latest release of Meat and Livestock Australia’s Industry Projections has a pertinent section on the structural shift in the national flock. Survey results continue
After a relatively stable few weeks, an increase in yardings and a softening of competition in the buying field applied downward pressure on prices this
All figures are looking up in the latest Meat and Livestock Australia sheep industry projections, released last week – except for prices that is. However,
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Listen to the podcast
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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.
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.
Quality over quantity
In WA stronger prices drew lambs and sheep out of the paddock. With a total yarding of just under 30 thousand head, it was the biggest week of saleyard throughput since early 2022. While the buying field in WA was reported as well attended, the influx of supply combined with mixed quality on offer saw prices lower across all types. Heavy lambs and mutton faced the greatest falls, down 88¢ and 76¢ week on week respectively.
In all other states, saleyard throughput of both lambs and sheep was fairly steady week on week according to preliminary MLA reports. Yardings are still tracking at above-average levels for this point in the season.
The Eastern States Trade Lamb Indicator gained 8¢ on the week to 823¢/kg cwt and appears to be settled in the +800¢ range while the finished lamb supply is tight. Well-finished lambs attracted solid competition from export buyers in Wagga, with heavy lambs picking up an additional 34¢ this week on average at a National level.
On balance light lamb values gained an additional 2¢ on the week and are currently sitting almost 300¢ or 85% higher than this point last year. Merino lambs also met stronger demand this week. Despite a slight lift in supply this week, the National Merino Lamb Indicator ended the week up 34¢ to 663¢/kg cwt.
While numbers of restocker lambs are always low at this point in the year, and the winter chill keeps potential buyers away, prices are “cheap” relative to the rest of the market. Restocker lambs in NSW and VIC were this week priced at around 580-590¢/kg cwt which puts them at a 40% discount to trade lambs. This is at the low end of the normal discount range for winter. This sings opportunity for those who can take them on.
Next week
The factors driving the market are unlikely to shift dramatically in the next few weeks. Quality will remain hard to find and it will be some time before the new season lamb numbers make an impact. As reported in this week’s analysis (read here) the spring market outlook appears positive, but as always rain will ultimately determine the outcome.
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Data sources: MLA, Mecardo
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Merino component of flock under pressure
The latest release of Meat and Livestock Australia’s Industry Projections has a pertinent section on the structural shift in the national flock. Survey results continue
Spring supply mounting in NSW
After a relatively stable few weeks, an increase in yardings and a softening of competition in the buying field applied downward pressure on prices this
Sheep and slaughter are still on the rise
All figures are looking up in the latest Meat and Livestock Australia sheep industry projections, released last week – except for prices that is. However,
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
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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.