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 big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
Australian sheep and lamb exports increased in September but remained subdued in relation to recent trends. The US took dominant market share for the month,
The sheep and lamb market showed some resilience this week as yardings backed off slightly but remained at their second-highest level since June. Merino lambs
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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.
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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.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
Categories
Have any questions or comments?
Taking a punt on merino lambs?
The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
Market kicks as quality starts to arrive
The story of supply has been driving the market since Winter, and demand has been reactive. Last week, there was movement at the station when
FTA fuels UK sheepmeat market
Australian sheep and lamb exports increased in September but remained subdued in relation to recent trends. The US took dominant market share for the month,
NSW leads sheep and lamb demand
The sheep and lamb market showed some resilience this week as yardings backed off slightly but remained at their second-highest level since June. Merino lambs
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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.