The final selling week of the 3rd quarter saw the spring lamb price decline continue, with competition at the rail not as hot as it has been in recent weeks. Supply was also down, helping to counteract the decrease in demand, not enough however, to lift prices. The market closed lower on the prior week for all, but one category.
The Eastern States Trade Lamb Indicator was down 1% to 776 c/kg for the week, supply for the indicator up 2% to 34.5k head. Forbes had the largest contribution of 24% in regard to volume, Wagga was in 2nd with 21%. Wagga’s saleyard report mentioned not all major buyers operating at
the sale, especially
for older trade lambs
The Western State trade lamb indicator closed the week down 10% in value. Both contributing saleyards were back over 50¢ compared to last week
and saleyard reports mentioned a drop in buyer demand as well as quality of
lambs on offer, leading to the softer result.
The National Mutton Indicator was the one indicator that
lifted week on week, finishing the selling week at 289 ¢/kg. However, this was
following a significant price drop last week.
The Restocker Lamb Indicator was erratic this week as the “haves
and have nots” continued to widen. The indicator finished the week at 606 c/kg,
a drop of 7% from the week prior with a yardings increase of 8%. NSW saleyards
were the strongest performing, averaging 10% above the national average. New
season lambs are still commanding a premium over the old season lambs at the
various weight classes. However, the premium has come off slightly according to
the saleyard reports.
Slaughter volumes for the week prior for lambs fell by 3%
and for sheep rose by 4% compared to the week prior. Victoria drove the lamb
decrease, with the 20k head reduction week on week. With 178k sheep processed
in the east, this was a 40% increase when compared to the same week last year
and 73% for the midterm average as seen in figure 1.
Initial yardings data from the NRLS show that the total yardings
for the week were down 4% on the week prior, as producers opt for the wait and
see as predicted last week. National Lamb yardings were back 16% on the same
selling week last year, although still 5% above the 5-year average.
Next week
Until we see a substantial rainfall event, supply is likely
to track close to current levels. Given export demand seems stagnant at best in
the near-term, we will be looking to the skies for price improvements.
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Siren sounds on the 3rd quarter
The Eastern States Trade Lamb Indicator was down 1% to 776 c/kg for the week, supply for the indicator up 2% to 34.5k head. Forbes had the largest contribution of 24% in regard to volume, Wagga was in 2nd with 21%. Wagga’s saleyard report mentioned not all major buyers operating at the sale, especially for older trade lambs
The Western State trade lamb indicator closed the week down 10% in value. Both contributing saleyards were back over 50¢ compared to last week and saleyard reports mentioned a drop in buyer demand as well as quality of lambs on offer, leading to the softer result.
The National Mutton Indicator was the one indicator that lifted week on week, finishing the selling week at 289 ¢/kg. However, this was following a significant price drop last week.
The Restocker Lamb Indicator was erratic this week as the “haves and have nots” continued to widen. The indicator finished the week at 606 c/kg, a drop of 7% from the week prior with a yardings increase of 8%. NSW saleyards were the strongest performing, averaging 10% above the national average. New season lambs are still commanding a premium over the old season lambs at the various weight classes. However, the premium has come off slightly according to the saleyard reports.
Slaughter volumes for the week prior for lambs fell by 3% and for sheep rose by 4% compared to the week prior. Victoria drove the lamb decrease, with the 20k head reduction week on week. With 178k sheep processed in the east, this was a 40% increase when compared to the same week last year and 73% for the midterm average as seen in figure 1.
Initial yardings data from the NRLS show that the total yardings for the week were down 4% on the week prior, as producers opt for the wait and see as predicted last week. National Lamb yardings were back 16% on the same selling week last year, although still 5% above the 5-year average.
Next week
Until we see a substantial rainfall event, supply is likely to track close to current levels. Given export demand seems stagnant at best in the near-term, we will be looking to the skies for price improvements.
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Data sources: MLA, 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.
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.