Restockers and lotfeeders look for new season lambs

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With the start of spring only a weekend away, restockers pushed select categories higher this week, while processor prices eased. Yardings also took a tumble, with 35,000 fewer lambs and 7,000 fewer sheep on offer over the past week, after slaughter rose for the week prior. Weather conditions will have been challenging for many in the south this week, but if it brought with it rain, producer sentiment could rise further as we turn into warmer weather.

The National Restocker Lamb Indicator jumped a significant 62¢/kg this week, to 1,088¢/kg. There were 10,000 fewer lambs yarded in that category, no doubt increasing the competition, but it now remains the only one of the major indicators that is above month-ago levels, trading at a 133¢/kg premium. Another good indication of restocker demand is the online sheep indicator, which rose 47¢/kg this week but sits slightly lower than four weeks ago. Numbers here also fell, nearly half the week prior.

Trade lambs also lifted this week, up 15¢/kg to 1,147¢/kg, continuing to trade at a more than 50% premium to the five and 10-year averages. The Eastern Trade Lamb Indicator rose further, up 15¢/kg to 1,153¢/kg. New season trade lambs were quoted as $5–$7 dearer at Wagga Wagga, NSW, which had 25% of the throughput in the east, while it was noted that paddock or lotfeeding suitable new season lambs lifted by $15–$27 and sold as far as Toowoomba, Queensland, and Loxton, South Australia. Trade and heavyweight lambs at Forbes, NSW, which had the majority trade lamb yarding in the east, sold at $235 to $340 a head.

Heavy lambs nationally lost another 26¢/kg, now down more than 50¢/kg for the month, to land at 1,130¢/kg, the poorest performing category for the week, with quality remaining in this category likely a factor. Mutton also dropped, down 9¢/kg to 705¢/kg. Light and Merino lambs experienced limited movement, up 3¢/kg and down 7¢/kg, respectively.

Next week

 More rain over the weekend and the start of spring could further push demand from restockers in the coming week. With most plants now out of winter shutdowns and significant numbers of heavy new season lambs likely coming later than usual, it will be interesting to watch whether they step up competition for those that are of the right quality, or look to other categories, such as mutton.

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Data sources: Mecardo; Meat and Livestock Australia

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