It’s been a rough week that has left sellers feeling sheepish. Prices tumbled across all categories of lamb and mutton. Slaughter numbers are holding strong and with plenty of stock heading to market, the pressure is once again kicking in.
The Eastern States Trade Lamb Indicator (ESTLI) lost 34¢ over the week to settle at 604¢/kg cwt. In the West, Trade Lamb prices also moved lower, but by a more tempered 6¢ week on week to 501¢/kg cwt.
The National Heavy Lamb Indicator dropped 22¢ (-3%) over the week to 667¢/kg cwt, the lowest it’s been since August 2022. The National Restocker Lamb Indicator fell 59¢ (-11%) over the week to 478¢, with restocker lambs selling cheaper in all states except WA. Restocker lamb prices are 228¢ or 32% lower than the same time last year.
Light lambs faced a similar fate this week, falling 52¢. This puts the National Light Lamb Indicator at the lowest level since mid-2016.
Mutton also lost much of the ground it had made up over the last month. The National Mutton Indicator dropped a heavy 86¢ (-19%) to 359¢/kg cwt.
Early yardings reports show a lift in lamb throughput from 196K to over 208k nationally this week, while at this point sheep throughput looks to be back by around 10K head. Slaughter is also continuing at strong levels, particularly for sheep. For the week ending the 5th of May over 122K sheep were processed in the east, and over 46K in the west. This is the largest weekly total kill of sheep in Western Australia at least in the last three years. This reiterates the point made by Leon Giglia, Region Livestock Manager, Western Australia for Nutrien Ag Solutions in last week’s episode of Commodity Conversations (Listen here), “We are hitting spring flush numbers and it’s never been seen before…kill space is a real issue”.
East Coast sheep slaughter is tracking around 31% higher than the five-year seasonal average. Lamb slaughter in the east last week was also up 6% year-on-year and 9% higher than the five-year average.
The week ahead….
After the whitewash of this week, we can only hope for a bounce in the weeks ahead. Last year it wasn’t until July that we really saw supply tighten up and prices rally, so we may be sitting with a cheaper market for a while longer.
Back to business, and the saleyards have seen stock flood the yards. The sharks were circling as the mutton momentum continued. Indicators took the elevator
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.
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.
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.
Sellers left sheepish in a falling market
The Eastern States Trade Lamb Indicator (ESTLI) lost 34¢ over the week to settle at 604¢/kg cwt. In the West, Trade Lamb prices also moved lower, but by a more tempered 6¢ week on week to 501¢/kg cwt.
The National Heavy Lamb Indicator dropped 22¢ (-3%) over the week to 667¢/kg cwt, the lowest it’s been since August 2022. The National Restocker Lamb Indicator fell 59¢ (-11%) over the week to 478¢, with restocker lambs selling cheaper in all states except WA. Restocker lamb prices are 228¢ or 32% lower than the same time last year.
Light lambs faced a similar fate this week, falling 52¢. This puts the National Light Lamb Indicator at the lowest level since mid-2016.
Mutton also lost much of the ground it had made up over the last month. The National Mutton Indicator dropped a heavy 86¢ (-19%) to 359¢/kg cwt.
Early yardings reports show a lift in lamb throughput from 196K to over 208k nationally this week, while at this point sheep throughput looks to be back by around 10K head. Slaughter is also continuing at strong levels, particularly for sheep. For the week ending the 5th of May over 122K sheep were processed in the east, and over 46K in the west. This is the largest weekly total kill of sheep in Western Australia at least in the last three years. This reiterates the point made by Leon Giglia, Region Livestock Manager, Western Australia for Nutrien Ag Solutions in last week’s episode of Commodity Conversations (Listen here), “We are hitting spring flush numbers and it’s never been seen before…kill space is a real issue”.
East Coast sheep slaughter is tracking around 31% higher than the five-year seasonal average. Lamb slaughter in the east last week was also up 6% year-on-year and 9% higher than the five-year average.
The week ahead….
After the whitewash of this week, we can only hope for a bounce in the weeks ahead. Last year it wasn’t until July that we really saw supply tighten up and prices rally, so we may be sitting with a cheaper market for a while longer.
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?
Slaughter not slacking either
Supply eased this week after a frenetic fortnight of lamb and sheep liquidation. An 18% decrease in lamb throughput and keen interest for lambs coming
Sheep running not walking to the yards
The mutton miracle we’ve seen over the last month brought forward a significant jump in numbers this week, taking some of the heat out of
Where is lamb and mutton heading over winter?
Lamb and mutton markets have been on the move lately, with mutton finally returning to what could be considered a ‘normal’ discount to lamb. We’re
Mutton momentum continues
Back to business, and the saleyards have seen stock flood the yards. The sharks were circling as the mutton momentum continued. Indicators took the elevator
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.