Despite lamb yardings running at above-average levels over the last few weeks, saleyard reports are still noting a hefty appetite from processors for lambs that meet their ideal requirements. Price movements this week paint a pretty clear picture of that story.
The Eastern States Trade Lamb Indicator (ESTLI) lifted to
817¢/kg cwt, up 29¢ on the week prior. Heavy lambs are once again hitting the
upper range of prices that we’ve seen over the last few months. The National
Heavy Lamb Indicator gained 19¢ on the week to 861¢/kg cwt. The desire for
quality and weight was apparent at Ballarat sales, where the limited number of
heavy lambs on offer averaged 934¢/kg cwt. The WA market is also firing on all
cylinders, with trade lambs this week making 724¢/kg cwt, which is a new weekly
high for the 2024 calendar year.
Light lambs also made some hefty gains this week with the
National Light Lamb Indicator rising 36¢ on the week to 710¢. Similar to
finished lambs, lighter weights are also now breaching the upper end of the
recent price trading range.
Restocker activity also appears to have picked up. This may
or may not have something to do with the decent rainfall that made its way
through parts of eastern Vic, northeast NSW last week and southern QLD last
week. Or perhaps it’s what’s forecast for the week ahead that has provided some
more confidence. Restocker lamb prices lifted 49¢ on average to 712¢/kg this
week, with Naracoorte, Wagga and Hamilton in particular witnessing strong
demand from restocker buyers.
While most segments of the lamb market are currently on a
roll, Merino lambs are still lagging behind. The National Merino Lamb Indicator
this week dropped 7¢ to average 564¢/kg cwt nationally. This is sitting 43¢
lower than where it was a month ago.
A slightly reduced yarding of mutton, at least compared to
the levels of the last month, pushed up competition in this week’s sales. The
National Mutton Indicator gained 40¢ to 363¢/kg cwt, with strength in the lamb
market also helping to drive up the market, much to the delight of sellers.
Processors stretched to a new high last week, as elevated
sheep supply continues to top up what is already a busy time for spring lamb
processing. Combined lamb and sheep slaughter for the week ending the 15th
of November was a record 718,311 head processed, which was 6% more than the
same time last year.
Next week
With a good chance of widespread rain across the eastern states next week, saleyard throughput may be a little tighter than we’d be expecting otherwise. As lamb numbers continue to climb towards their seasonal peak, a bit of price pressure would make sense, however, processors look more than willing to pay up at the moment even when dealing with record-high volumes.
Contracting supply and rain were key ingredients in a much stronger lamb and sheep market this week. Seasonal conditions have conspired with robust processing demand
The Australian Bureau of Statistics (ABS) released its quarterly livestock slaughter and meat production figures for September last week. The numbers explain a lot about
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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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Record slaughter doesn’t dampen spirits
The Eastern States Trade Lamb Indicator (ESTLI) lifted to 817¢/kg cwt, up 29¢ on the week prior. Heavy lambs are once again hitting the upper range of prices that we’ve seen over the last few months. The National Heavy Lamb Indicator gained 19¢ on the week to 861¢/kg cwt. The desire for quality and weight was apparent at Ballarat sales, where the limited number of heavy lambs on offer averaged 934¢/kg cwt. The WA market is also firing on all cylinders, with trade lambs this week making 724¢/kg cwt, which is a new weekly high for the 2024 calendar year.
Light lambs also made some hefty gains this week with the National Light Lamb Indicator rising 36¢ on the week to 710¢. Similar to finished lambs, lighter weights are also now breaching the upper end of the recent price trading range.
Restocker activity also appears to have picked up. This may or may not have something to do with the decent rainfall that made its way through parts of eastern Vic, northeast NSW last week and southern QLD last week. Or perhaps it’s what’s forecast for the week ahead that has provided some more confidence. Restocker lamb prices lifted 49¢ on average to 712¢/kg this week, with Naracoorte, Wagga and Hamilton in particular witnessing strong demand from restocker buyers.
While most segments of the lamb market are currently on a roll, Merino lambs are still lagging behind. The National Merino Lamb Indicator this week dropped 7¢ to average 564¢/kg cwt nationally. This is sitting 43¢ lower than where it was a month ago.
A slightly reduced yarding of mutton, at least compared to the levels of the last month, pushed up competition in this week’s sales. The National Mutton Indicator gained 40¢ to 363¢/kg cwt, with strength in the lamb market also helping to drive up the market, much to the delight of sellers.
Processors stretched to a new high last week, as elevated sheep supply continues to top up what is already a busy time for spring lamb processing. Combined lamb and sheep slaughter for the week ending the 15th of November was a record 718,311 head processed, which was 6% more than the same time last year.
Next week
With a good chance of widespread rain across the eastern states next week, saleyard throughput may be a little tighter than we’d be expecting otherwise. As lamb numbers continue to climb towards their seasonal peak, a bit of price pressure would make sense, however, processors look more than willing to pay up at the moment even when dealing with record-high volumes.
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Data sources: MLA, BOM, Mecardo
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Defying seasonality
Contracting supply and rain were key ingredients in a much stronger lamb and sheep market this week. Seasonal conditions have conspired with robust processing demand
Lamb forecast fits with future figures
Despite record-high slaughter figures for lamb so far this year, there are plenty of lambs left in the paddock according to the latest Sheep Producers
Here comes the rain again
Spring is coming to an end, but the consequences of the dry southern winter continue to drive the market. The search for weight is creating
Early indications of weaker lamb supply for 2025
The Australian Bureau of Statistics (ABS) released its quarterly livestock slaughter and meat production figures for September last week. The numbers explain a lot about
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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.