Supply eased this week after a frenetic fortnight of lamb and sheep liquidation. An 18% decrease in lamb throughput and keen interest for lambs coming off feed pushed lamb markets higher while mutton markets eased slightly despite 25% lower supply.
In the last four weeks, Sheep slaughter has tracked below year-ago levels despite the big yardings seen in the last fortnight. Processor Mutton demand in the face of dry conditions and turn-off supply has been important for producers managing difficult conditions so this does give pause to those watching the market. However, NLRS slaughter data is showing that there has been a lift in focus on lambs in the last few weeks on the processor side. 1.04 million head of lambs have been processed in the previous fortnight (the biggest since the post-holiday period in January).
Lower supply, and lower demand (with some processors not present in some mutton markets per saleyard reports) of turn off sheep this week looks to be more of a side effect of the ahead of schedule supply. Year-to-date yardings for sheep are 21% higher YoY and are 55% higher than the 5-year average for so far this year. Particularly after the last 2 weeks of mutton flooding the yards sheep supply is well and truly still ahead of schedule. The national mutton indicator lost 11¢ to 517¢/kg cwt but remains 81¢ higher MoM.
After a summer and autumn on feed, some heavier lambs made their way to the yards this week, which boosted lamb markets for heavier trade articles. The Eastern States Trade Lamb Indicator (ESTLI) gained 19¢ to 847¢/kg cwt. Similarly, restockers and feeders in Hamilton bid strongly for lambs heading back on feed, focusing on lighter lambs.
Next week
Feeder buyers might be on the lookout to acquire their winter stock before tightening supply makes competition stronger.
Australian sheepmeat exports were lifted in September but remained below year-ago and five-year average volumes on the back of lower domestic slaughter and global trade
The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
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Slaughter not slacking either
In the last four weeks, Sheep slaughter has tracked below year-ago levels despite the big yardings seen in the last fortnight. Processor Mutton demand in the face of dry conditions and turn-off supply has been important for producers managing difficult conditions so this does give pause to those watching the market. However, NLRS slaughter data is showing that there has been a lift in focus on lambs in the last few weeks on the processor side. 1.04 million head of lambs have been processed in the previous fortnight (the biggest since the post-holiday period in January).
Lower supply, and lower demand (with some processors not present in some mutton markets per saleyard reports) of turn off sheep this week looks to be more of a side effect of the ahead of schedule supply. Year-to-date yardings for sheep are 21% higher YoY and are 55% higher than the 5-year average for so far this year. Particularly after the last 2 weeks of mutton flooding the yards sheep supply is well and truly still ahead of schedule. The national mutton indicator lost 11¢ to 517¢/kg cwt but remains 81¢ higher MoM.
After a summer and autumn on feed, some heavier lambs made their way to the yards this week, which boosted lamb markets for heavier trade articles. The Eastern States Trade Lamb Indicator (ESTLI) gained 19¢ to 847¢/kg cwt. Similarly, restockers and feeders in Hamilton bid strongly for lambs heading back on feed, focusing on lighter lambs.
Next week
Feeder buyers might be on the lookout to acquire their winter stock before tightening supply makes competition stronger.
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Data sources: Mecardo; Meat and Livestock Australia
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Exports find support in September
Australian sheepmeat exports were lifted in September but remained below year-ago and five-year average volumes on the back of lower domestic slaughter and global trade
Bounce back in market as lamb supply slows
Sheep and lamb supply fell away again this week prompting a significant boost to the market right across the board. National indicators rose up to
Lessons from weekly slaughter
The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
Holding pattern ahead of the long weekend.
With the impending long weekend in NSW, the market was in a bit of a holding pattern this week, as most of the major indicators
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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.
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.