Sheep in an Australian field in rural NSW on a foggy morning

Spurred by widespread rain on the East coast and plenty of quality pens; restockers and processors clashed at the rail sending prices skywards. One more sale week remains for 2024 before the Christmas shutdown with the market operating at elevated levels.

Quality drove the prices, with many saleyard reports mentioning erratic markets for some of the indicators depending on the pen on offer. The theme amongst them all is that shorn new season lambs that presented well commanded a premium. Victorian saleyards led the pack on multiple indicators in regard to contribution.  Wagga often averaged the highest in value.

Hamilton had a near record yarding for its 2nd last week of 63k head which according to the saleyard report the yarding overall had excellent quality, with only the tail end a bit dryer with less weight and quality. It had the largest contribution to the Eastern State Trade Lamb indicator and the light lamb indicator, it was also 3rd for the restocker and 4th for the heavy lamb indicator. The ESTLI averaged 884 ¢/kg for the week an increase of 2% with yardings rising 17%, hitting the highest price for 2024 as shown in figure 1.

Light lambs saw the largest increase in value week on week climbing 9% to close the week just shy of $8/kg at 797¢/kg. Wagga had the largest volume contribution of 25% and had the second-highest average selling price (which was at a 12% premium to the indicator). Its saleyard report said that multiple lightweight lamb pens cracked the 1000¢/kg threshold as store buyers were back and ready to take on the processors.

Slaughter data for the week prior show an increase of 2% for both lamb and sheep as processors continue to operate at elevated levels to handle the supply. Some movements between article and state such as NSW sheep slaughter rising 8%, whilst lamb dropped 4%.

Initial yardings data from the NRLS show a 12% lift in yardings week on week with lambs up 20%, whilst sheep fell by 4% week on week. It was the second largest yardings week for the year at a combined level. Lamb yardings cracked the 300k mark making it the largest lamb yarding of the year. Despite the record for this year, it was still down 13% on the same week last year. 

Next week

Final selling week of 2024 as many saleyards prepare for the well-deserved break over the Christmas/New Year period will see the surge in activity continue. For producers hopefully, the competition at the rail between restockers and processers remains fierce and can support the recent price rally seen in the majority of indicators.

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Data sources: MLA, Mecardo

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