sheep

Volatility at the saleyards has driven producers to hold their stock back in the paddock. This week the limited offering drove up the saleyard price for most categories of lamb and sheep.

We looked into what’s happening with supply in yesterday’s analysis (view here) and found that sheep and lamb slaughter is tracking around 30% lower than last year. Restricted processing capacity and the weaker market we’ve seen in the last few weeks has some producers opting to keep lambs in the paddock longer than they may have otherwise.

While 197,477 head of lambs were yarded in the east in the week ending the 21st of January, saleyard reports suggest that this week lamb offerings were very limited. Adding a public holiday into the mix, buyers were comfortable jumping in to secure stock and push up the price.

Trade and restocker lambs were most improved for the week. The Eastern States Trade Lamb Indicator (ESTLI) lifted 37¢ to 875¢/kg cwt and the National Restocker Lamb Indicator gained 32¢ to 948¢/kg cwt, with both indicators sitting higher than the same time last year. Heavy lamb prices lifted in all states bar Victoria which saw an overall increase in the National Heavy Lamb Indicator of 12¢ to 854¢/kg cwt.

After the heavy correction in the price of mutton over the last few weeks, mutton did find some support this week. The National Mutton Indicator gained 7¢ to 582¢/kg cwt, 21¢ below the same time last year.

The week ahead….

The Australian dollar dropped 2.1% over the week which should help attract more interest from overseas customers of our export product. Both the ESTLI and NMI in USD terms are currently cheaper than this time last year, and at the lower end of the range for the past 12 months. The market is really hinging on the capacity of processors at the moment but this week has shown that producers will sit back and wait while there’s still feed in the paddock for more stability in price.

Have any questions or comments?

We love to hear from you!
Print This Post

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: MLA, NLRS, Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!
Sheep

2022 no creature of habit

Unseasonably strong supply is adding to the pressure on the lamb and sheep market. The winter price rally which usually accompanies the seasonal low in

Read More »

Don’t have an account with us? Join free.

You can have full premium access to all of our content with a monthly or annual subscription. 

Alternatively, create a free account to access our Insights blog and two free premium article a month!

Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
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.

Photo of a farmer surrounded by Merino sheep in dusty yards
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. 

Image of harvested grain pouring into a chaser bin
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.