Store lamb prices hit a low for February at the start of this week, but buyers became more active as the week progressed and prices managed to improve. Reports from key saleyards suggest, there was a drop in saleyard lamb and sheep throughput as numbers were cut due to cheaper values, but there’s plenty of mutton on the kill floor.
The Eastern States Trade Lamb Indicator (ESTLI) lost 7¢ over the week due to weaker competition, finishing Thursday at 740¢/kg cwt. In the West, trade lambs have been trending weaker since January. This has continued with the WA trade lamb indicator dropping another 16¢ to 573¢/kg cwt, which is 264¢ (-31%) lower than the same time last year.
Heavies are still holding steady, with the National Heavy lamb Indicator moving 3¢ higher week on week, to settle at 797¢/kg cwt, up 37¢ (5%) year on year.
The restocker market moved similarly in both NSW and Vic, with the indicators lifting across the week. The National Restocker Lamb Indicator gained 31¢ week on week to 648¢/kg cwt as the young lamb supply tightened. Merino lambs also found more strength with the indicator lifting 43¢ to 653¢/kg cwt. This is 54¢ below where the National Merino Lamb Indicator was sitting at this time last year. Light lambs also gained 21¢ to 648¢/kg cwt, which is 162¢ (-20%) lower year on year.
After last week’s steep price fall, mutton ended this week 13¢ higher at 330¢/kg cwt. This is still within the lower end of the range we’ve seen mutton priced since the start of this year.
Lamb and sheep throughput were fairly steady in the previous two weeks, with around 176K lambs and 122k sheep moving through saleyards. For the week ending the 17th of February processors were running slightly below the levels of the prior two weeks. Combined sheep and lamb slaughter of 459,650 head was 4% below the week prior, but only just shy of five-year average levels. There was a shift on the chain last week though, with fewer lambs on the hook, replaced by more sheep. With 178,929 sheep processed in total for east and west over the week, this was the highest weekly sheep slaughter we’ve seen since 2020.
The week ahead….
With the AUD finding its way back to the lows of early January at 0.68 US¢, finished lamb and mutton will be looking like good buying for our overseas customers when compared to levels seen previously over the last month. This should help to stimulate some demand while the exchange rate remains favourable to buyers.
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
A short week, and closed saleyards on Thursday has culminated in some relief on the supply front as combined lamb and sheep yardings nationally dropped
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.
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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.
Sheep supply flush working through as market finds support
The Eastern States Trade Lamb Indicator (ESTLI) lost 7¢ over the week due to weaker competition, finishing Thursday at 740¢/kg cwt. In the West, trade lambs have been trending weaker since January. This has continued with the WA trade lamb indicator dropping another 16¢ to 573¢/kg cwt, which is 264¢ (-31%) lower than the same time last year.
Heavies are still holding steady, with the National Heavy lamb Indicator moving 3¢ higher week on week, to settle at 797¢/kg cwt, up 37¢ (5%) year on year.
The restocker market moved similarly in both NSW and Vic, with the indicators lifting across the week. The National Restocker Lamb Indicator gained 31¢ week on week to 648¢/kg cwt as the young lamb supply tightened. Merino lambs also found more strength with the indicator lifting 43¢ to 653¢/kg cwt. This is 54¢ below where the National Merino Lamb Indicator was sitting at this time last year. Light lambs also gained 21¢ to 648¢/kg cwt, which is 162¢ (-20%) lower year on year.
After last week’s steep price fall, mutton ended this week 13¢ higher at 330¢/kg cwt. This is still within the lower end of the range we’ve seen mutton priced since the start of this year.
Lamb and sheep throughput were fairly steady in the previous two weeks, with around 176K lambs and 122k sheep moving through saleyards. For the week ending the 17th of February processors were running slightly below the levels of the prior two weeks. Combined sheep and lamb slaughter of 459,650 head was 4% below the week prior, but only just shy of five-year average levels. There was a shift on the chain last week though, with fewer lambs on the hook, replaced by more sheep. With 178,929 sheep processed in total for east and west over the week, this was the highest weekly sheep slaughter we’ve seen since 2020.
The week ahead….
With the AUD finding its way back to the lows of early January at 0.68 US¢, finished lamb and mutton will be looking like good buying for our overseas customers when compared to levels seen previously over the last month. This should help to stimulate some demand while the exchange rate remains favourable to buyers.
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?
Buyers are back baby
The lamb and sheep markets were back in full swing following last week’s shorter selling week. Most notable were the buyers, pushing prices up across
How do the size of yardings move prices in Wagga
Talk to any farmer or local agent, and they will tell you that local supply has an impact on local prices. Many a grower will
International sheep meat supply and lamb prices
In mid-2022 Mecardo looked at the international supply of sheep meat (albeit from a limited number of countries) showing how lower supply had positively correlated
44% drop in supply springs market into action
A short week, and closed saleyards on Thursday has culminated in some relief on the supply front as combined lamb and sheep yardings nationally dropped
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.
Research: Analysis of the Australian sheep flock
In this report for LiveCorp and MLA, we analysed the historical trends in the demographics of the Australian sheep flock, examining domestic factors that influence farm-level enterprise decision making.
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.