Looking at the numbers first – last week’s slaughter was higher coming off the back of a short week, but still sat lower than the same week the previous two years. Lambs were down about 10% year-on-year, while mutton was 23% lower. Total combined sheep and lamb slaughter was 14% lower year-on-year, but still sat 22% above the five-year-average for that week. Putting throughput for the year so far into perspective, this time last year the sheep and lamb kill weekly average was 19% higher than what it is now. As mentioned, yardings fell after a big week last week, with lamb only down 2% and 21% above year-ago numbers.
Mutton yardings lost 19% for the week, which equated to a drop of more than 20,000 head through the national indicator. At 764¢/kg, the NMI was up 7¢/kg, and it continues to trade at more than 100% above the same time last year. Comparatively to lamb, mutton is trending at a lower premium to month-ago levels, only 14¢/kg higher, but historically it still sits about 70% above the five-year average. The online sheep indicator gives us some perspective of restocker demand, and it dropped 5¢/kg this week, to close at 211¢/kg (liveweight). Throughput numbers were well down year-on-year, with nearly all stock coming out of the southern half of NSW. South West NSW had 40% of the numbers, and averaged just 194¢/kg.
Heavy lambs picked up another 20¢/kg, finishing at 1086¢/kg, while restocker lambs reached 1125¢/kg, up 21¢/kg. Light and Merino lambs lost ground earlier in the week, however are still trending at a similar premium to a month-ago as the remainder of the major lamb indicators. Trade lambs were fully firm at 1108¢/kg nationally, with in the east it closed the week at 1111¢/kg. Despite this putting the ESTLI 28% higher year-on-year, it is a discount of 5% to the five-year average. Wagga Wagga and Forbes, NSW, are yards in relatively close location proximity and had 18% and 14% of the total trade lamb throughput, yet their average price was nearly $1/kg apart, with Forbes in front at 1187¢/kg.
Sheep and lambs still lifting
Next week
Market dynamics seem to be steady as she goes for sheep and lamb for the time being, as we wait to see what the autumn break brings. As we discussed earlier this week here export demand continues to drive our domestic prices, and supply is unlikely to catch up to this in the short term.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
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