Supply lifted on the week prior for both lamb and sheep, which weighed slightly on the value of the indicators. Isolated rain fell on the southeast coast, with significant rain on the northern third, which has caused flooding. Quality is making the movements within indicators quite erratic, with not all buyers operating despite being present at the sales.
The Eastern States Trade Lamb Indicator fell by 2% in the first selling week of February, closing the week at 772 ¢/kg. Trade lamb yardings also fell by 7% to 25k head passing through saleyards on the east coast. Wagga and Ballarat shared 44.5% of the indicator volume, Wagga averaged at a 2% discount to the indicator, whilst Ballarat traded 3% higher on average. Both saleyard reports point to shorn lambs being the hottest in demand and fetching a premium. They also mention despite having a full turnout in the buying field not all were operating in the market.
Restocker and Merino indicators both experienced substantial jumps in yardings compared to the week prior. Restocker lambs yardings were up 80% to 44.8k head, with the value only falling by 4% to 676¢/kg. Merino Indicator experienced an even larger increase in volume with yardings up 103% on the prior week. Despite the doubling in supply the value of the indicator was back 2% on the week prior. The west experienced big gains in yardings week on week contributing to the supply surge, especially for the merinos where Muchea and Katanning were 2nd and 3rd largest contributors. The west coast saleyards were trading at a discount to the east coast, with both saleyard averages below the national average.
Mutton had the largest increase in value of all the indicators this week, whilst also experiencing a 21% increase in yardings. The indicator finished the selling week at 373¢/kg, a 7% increase on last week. Four saleyards cracked the $4/kg threshold for the week, these four combined had 40% of the throughput.
Slaughter for the week prior was back 16% for lamb and sheep at a national level, this was the week beginning on the 27th which was the Australia Day public holiday. There was a larger decrease in sheep slaughter week on week than in lambs with sheep falling 19% and lambs 15%.
Initial yardings data from the NRLS show a week on week increase of 27% at a total level of 318k head following the long weekend which saw some sales not take place. Sheep had a slightly less increase than lamb did with lambs increasing week on week by 29%, compared to 24%.
Next week
There is rain on the forecast for the East coast, although in traditional lamb and sheep areas, the amount of rain is not very significant. With supply week on week not expected to have a significant shift, prices should remain supported as processors continue to push operational capacity.
Australian sheepmeat exports have steamed past their previous financial year record, with our two major markets upping the ante, and both Middle East and South-East
The mid-winter supply squeeze is starting to show in the sheep and lamb market, with last week’s slaughter and this week’s total physical yardings trending
The Meat and Livestock Australia (MLA) and Australian Wool Innovation (AWI) Sheep Producer Intentions Survey (SPIS) was released last week, and the results were interesting,
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Shorn sheep surcharge
The Eastern States Trade Lamb Indicator fell by 2% in the first selling week of February, closing the week at 772 ¢/kg. Trade lamb yardings also fell by 7% to 25k head passing through saleyards on the east coast. Wagga and Ballarat shared 44.5% of the indicator volume, Wagga averaged at a 2% discount to the indicator, whilst Ballarat traded 3% higher on average. Both saleyard reports point to shorn lambs being the hottest in demand and fetching a premium. They also mention despite having a full turnout in the buying field not all were operating in the market.
Restocker and Merino indicators both experienced substantial jumps in yardings compared to the week prior. Restocker lambs yardings were up 80% to 44.8k head, with the value only falling by 4% to 676¢/kg. Merino Indicator experienced an even larger increase in volume with yardings up 103% on the prior week. Despite the doubling in supply the value of the indicator was back 2% on the week prior. The west experienced big gains in yardings week on week contributing to the supply surge, especially for the merinos where Muchea and Katanning were 2nd and 3rd largest contributors. The west coast saleyards were trading at a discount to the east coast, with both saleyard averages below the national average.
Mutton had the largest increase in value of all the indicators this week, whilst also experiencing a 21% increase in yardings. The indicator finished the selling week at 373¢/kg, a 7% increase on last week. Four saleyards cracked the $4/kg threshold for the week, these four combined had 40% of the throughput.
Slaughter for the week prior was back 16% for lamb and sheep at a national level, this was the week beginning on the 27th which was the Australia Day public holiday. There was a larger decrease in sheep slaughter week on week than in lambs with sheep falling 19% and lambs 15%.
Initial yardings data from the NRLS show a week on week increase of 27% at a total level of 318k head following the long weekend which saw some sales not take place. Sheep had a slightly less increase than lamb did with lambs increasing week on week by 29%, compared to 24%.
Next week
There is rain on the forecast for the East coast, although in traditional lamb and sheep areas, the amount of rain is not very significant. With supply week on week not expected to have a significant shift, prices should remain supported as processors continue to push operational capacity.
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Data sources: Mecardo, MLA, BOM
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Have any questions or comments?
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Australian sheepmeat exports have steamed past their previous financial year record, with our two major markets upping the ante, and both Middle East and South-East
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The mid-winter supply squeeze is starting to show in the sheep and lamb market, with last week’s slaughter and this week’s total physical yardings trending
Some surprising numbers in sheep survey data
The Meat and Livestock Australia (MLA) and Australian Wool Innovation (AWI) Sheep Producer Intentions Survey (SPIS) was released last week, and the results were interesting,
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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.