An extra 2,100 head (1%) of lambs were processed on the east coast in the week ending the 22nd of January, compared to the week prior. Without the normal hike in slaughter rates this year, the total number of lambs slaughtered in the first four weeks of the year was 24% below the five-year average for this period.
There was a lift in sheep slaughter though, with an extra 6,593 sheep (7%) processed in the east compared to the week earlier. If we were to point the finger somewhere for weaker supply it would have to be Victoria. The number of lambs slaughtered in the first four weeks of 2021 was 43% below the five-year average.
A 13% drop in yardings in Victoria also drove down the total east coast throughput for lamb and sheep. A total of 226,116 lambs were yarded in the east, which is a strong show for this time of year, 23% higher than the seasonal average. The number of sheep in yards usually surges at the start of the New Year before falling, but the flow appears less volatile this year. Last week’s sheep yardings total was the closest to the seasonal average they’ve been in a long time.
Prices generally improved across all categories of lamb and sheep this week, except in Victoria interestingly, where results were a mixed bag of gains and losses.
The Eastern States Trade Lamb Indicator gained 24¢ to end at 849¢/kg cwt. In the West the Western Australian Trade Lamb Indicator inched just 3¢ higher to 734¢/kg cwt. After last weeks falls, the National Light Lamb Indicator recovered 51¢ to 866¢/kg cwt. Heavy lambs also made up 21¢.
The National Mutton Indicator also made up for last weeks loss, hiking back up to 603¢/kg cwt which puts the indicator 6% above the same time last year.
Slaughter a little undercooked for Australia day
An extra 2,100 head (1%) of lambs were processed on the east coast in the week ending the 22nd of January, compared to the week prior. Without the normal hike in slaughter rates this year, the total number of lambs slaughtered in the first four weeks of the year was 24% below the five-year average for this period.
There was a lift in sheep slaughter though, with an extra 6,593 sheep (7%) processed in the east compared to the week earlier. If we were to point the finger somewhere for weaker supply it would have to be Victoria. The number of lambs slaughtered in the first four weeks of 2021 was 43% below the five-year average.
A 13% drop in yardings in Victoria also drove down the total east coast throughput for lamb and sheep. A total of 226,116 lambs were yarded in the east, which is a strong show for this time of year, 23% higher than the seasonal average. The number of sheep in yards usually surges at the start of the New Year before falling, but the flow appears less volatile this year. Last week’s sheep yardings total was the closest to the seasonal average they’ve been in a long time.
Prices generally improved across all categories of lamb and sheep this week, except in Victoria interestingly, where results were a mixed bag of gains and losses.
The Eastern States Trade Lamb Indicator gained 24¢ to end at 849¢/kg cwt. In the West the Western Australian Trade Lamb Indicator inched just 3¢ higher to 734¢/kg cwt. After last weeks falls, the National Light Lamb Indicator recovered 51¢ to 866¢/kg cwt. Heavy lambs also made up 21¢.
The National Mutton Indicator also made up for last weeks loss, hiking back up to 603¢/kg cwt which puts the indicator 6% above the same time last year.
The week ahead….
In some years the weaker demand in early February has led to weaker prices, but in years of weaker supply (2017), it’s been met with strong prices. The softening AUD may give export buyers some incentive, but Australian lamb is still looking expensive in any currency.
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?
Lambs back to 600¢/kg mark
The positivity in the sheep and lamb market has continued to pick up this week, yet to be slowed by the upcoming festive season break
2024 a year of recovery for lamb?
It’s that time of year when we dust off the crystal ball and take a look at what markets are likely to do in 2024.
More rain lifts prices
Widespread rain on the East Coast helped prices continue their upward trajectory, supported by a decrease in throughput as growers’ feed supply concerns further eased.
Lamb turnoff takes precedence
Sheep slaughter for the September 2023 quarter rose year-on-year but dropped in comparison to the previous quarter, the first time this has occurred since 2016.
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.