Short selling weeks tend to generate havoc in livestock markets, especially when it causes already tight supply to get tighter. But while much of the market was steady on price, tight supply has supported values this week, with improvements reported in restocker lamb and firing mutton prices.
The slide in the Eastern States Trade Lamb Indicator (ESTLI) came to a halt this week. From last Wednesday (31st) the ESTLI improved 1¢ to 842¢/kg cwt which is 7% under the same time last year. In the West, the market was stronger, with the Trade Lamb Indicator gaining 26¢ to 730¢/kg cwt.
Solid demand was found for Restocker lambs. In NSW the indicator lifted 38¢ to 1,022¢/kg cwt, a momentum which was also felt in Victoria, where the Restocker Indicator gained 30¢ to 930¢/kg cwt. Both these indicators are sitting on or close to year-ago levels.
It was steady as she goes for Heavy and Merino lambs, with both National Indicators unchanged over the period. The Mutton market is really on the move. The National Mutton Indicator gained another 17¢, continuing the rally that began in February to end this week at 677¢/kg cwt.
East coast lamb slaughter fell 22% to 268,424 head processed in the week before Easter. Sheep slaughter volumes were also 20% lighter than the week prior. While these pre-Easter slaughter volumes are low in historical comparison, they are higher than volumes recorded pre easter in 2020, when the uncertainty of Covid was at its peak.
The week ahead….
The lamb market appears in pretty healthy shape and the mutton market has rarely looked better. Export volumes are tracking strong considering the supply on offer and prices remain very strong. There is a bit of rain on the horizon for eastern NSW & Vic, and coastal WA in the week ahead, which is unlikely to shake out further supply. Looking further ahead to Winter, the BOM is forecasting a 40-50% chance of above median rainfall for most of the east coast and sheep regions of WA.
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
Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
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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.
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Short sales deliver steady lamb price but mutton on a roll
The slide in the Eastern States Trade Lamb Indicator (ESTLI) came to a halt this week. From last Wednesday (31st) the ESTLI improved 1¢ to 842¢/kg cwt which is 7% under the same time last year. In the West, the market was stronger, with the Trade Lamb Indicator gaining 26¢ to 730¢/kg cwt.
Solid demand was found for Restocker lambs. In NSW the indicator lifted 38¢ to 1,022¢/kg cwt, a momentum which was also felt in Victoria, where the Restocker Indicator gained 30¢ to 930¢/kg cwt. Both these indicators are sitting on or close to year-ago levels.
It was steady as she goes for Heavy and Merino lambs, with both National Indicators unchanged over the period. The Mutton market is really on the move. The National Mutton Indicator gained another 17¢, continuing the rally that began in February to end this week at 677¢/kg cwt.
East coast lamb slaughter fell 22% to 268,424 head processed in the week before Easter. Sheep slaughter volumes were also 20% lighter than the week prior. While these pre-Easter slaughter volumes are low in historical comparison, they are higher than volumes recorded pre easter in 2020, when the uncertainty of Covid was at its peak.
The week ahead….
The lamb market appears in pretty healthy shape and the mutton market has rarely looked better. Export volumes are tracking strong considering the supply on offer and prices remain very strong. There is a bit of rain on the horizon for eastern NSW & Vic, and coastal WA in the week ahead, which is unlikely to shake out further supply. Looking further ahead to Winter, the BOM is forecasting a 40-50% chance of above median rainfall for most of the east coast and sheep regions of WA.
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Data sources: MLA, NLRS, 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.
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.
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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.