Sheep transport vehicle

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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Data sources: MLA, Mecardo

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