Supply more than doubled after an interrupted few weeks to the sales process. The combination of a leap in numbers and some selective buying at the yards contributed to pushing trade and heavy lamb indicators lower for the week.
NSW saleyard indicators across the board saw a decline, with buying activity more focused on lambs coming out of Victoria and bidding strongly to secure grain-fed lambs from the south. MLA saleyard reports across the main selling centres detailed processor preference for shorn heavyweight lambs and noted that buyers were more selective.
At a national level, the turn-off end of the market saw declines, as the National Heavy Lamb Indicator lost 29¢ to 1,067¢/kg cwt and trade lambs dropped 28¢ to 1,108¢/kg cwt. Lighter lambs found some support as feedlot buyers looked to acquire stock, with the restocker lamb indicator improving 19¢ to 1,105¢/kg cwt. Merino lambs saw the steepest week-on-week decline, falling 61¢ to an even 1,000¢/kg cwt.
Moving away from the east coast, the supply situation continues to bite. SA has started the year in a deep supply glut, with January yardings for sheep 66% lower than five-year average levels, and lamb yardings 52% lower than the five-year average. Whilst cancelled sales have contributed to this, the lack of numbers is telling in saleyard reports as buyers chase lighter types to bring back to the paddock.
This week on Mecardo, Jamie-Lee Oldfield discussed what needs to happen for Mutton Indicators to kick on and potentially reach record highs in 2026 (Read more here). Historically, mutton prices rise on the approach to winter, and with global protein demand growing, processors will be keen to continue the mutton momentum this year. The last ingredient for record prices is southern rain, which will allow producers to hold onto stock and force competition again amongst processors. The National Mutton Indicator (NMI) lost 7¢ to 757¢/kg cwt.
The week ahead….
Merino lambs corrected this week and will likely sit below the $10/kg cwt mark in the short term, as crossbred lambs sit higher in the pecking order.
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Selective buying as supply catches up
NSW saleyard indicators across the board saw a decline, with buying activity more focused on lambs coming out of Victoria and bidding strongly to secure grain-fed lambs from the south. MLA saleyard reports across the main selling centres detailed processor preference for shorn heavyweight lambs and noted that buyers were more selective.
At a national level, the turn-off end of the market saw declines, as the National Heavy Lamb Indicator lost 29¢ to 1,067¢/kg cwt and trade lambs dropped 28¢ to 1,108¢/kg cwt. Lighter lambs found some support as feedlot buyers looked to acquire stock, with the restocker lamb indicator improving 19¢ to 1,105¢/kg cwt. Merino lambs saw the steepest week-on-week decline, falling 61¢ to an even 1,000¢/kg cwt.
Moving away from the east coast, the supply situation continues to bite. SA has started the year in a deep supply glut, with January yardings for sheep 66% lower than five-year average levels, and lamb yardings 52% lower than the five-year average. Whilst cancelled sales have contributed to this, the lack of numbers is telling in saleyard reports as buyers chase lighter types to bring back to the paddock.
This week on Mecardo, Jamie-Lee Oldfield discussed what needs to happen for Mutton Indicators to kick on and potentially reach record highs in 2026 (Read more here). Historically, mutton prices rise on the approach to winter, and with global protein demand growing, processors will be keen to continue the mutton momentum this year. The last ingredient for record prices is southern rain, which will allow producers to hold onto stock and force competition again amongst processors. The National Mutton Indicator (NMI) lost 7¢ to 757¢/kg cwt.
The week ahead….
Merino lambs corrected this week and will likely sit below the $10/kg cwt mark in the short term, as crossbred lambs sit higher in the pecking order.
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Data sources: MLA, Mecardo
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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.
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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.