Tighter supply and public holiday shutdowns have incentivised buyers to push the market higher this week. With all lamb categories now averaging higher than$10/kg carcase weight and numbers lagging to begin the year the market looks to be very reactive to stock on hand.
The Eastern States Trade Lamb Indicator (ESTLI), improved 27¢ to 1086¢/kg cwt, and restockers pushed the market for lighter lambs back to the paddock to 1112¢/kg cwt (a 32¢ increase). Heavy lambs were also 15¢ higher to 1056¢/kg cwt.
It’s been well discussed the changing farm level economics on prime lamb production vs wool production, but buyers look to be making the most of the strong start to the wool season and until this week, the relative affordability of merino lambs at the yards. The national Merino lamb indicator improved 79¢ to 1006¢/kg cwt and still remain discounted to other categories. The National Mutton Indicator (NMI) is down 2¢ to 748¢/kg cwt.
Total sheep and lamb yardings have had a conservative start to the year, with this weeks indicative number from the NLRS at 273K head (16% lower week on week). Lower than normal supply isn’t new to the lamb trade this last 2 years, but it is a slow start which will be monitored closely. Combined lamb and sheep numbers for the year to date are the lowest for more than 5 seasons. Numbers are down 21% YoY YTD and 5% lower compared to the YTD 5-year average. It took till April for the late lambs to be in trade condition, but even so there was still a lot more lambs available last year to start the year.
Slaughter has started higher than the doldrums of winter and spring last season, with combined slaughter at 439K head last week but the lack of numbers continues to weigh on ideal production. Lamb slaughter was down 12% on this time last year and 22% lower for sheep slaughter.
Next week
The market is very reactive to supply at the moment and looks to be trading either side of the $10/kg mark range. With a public holiday next week, there will be incentives to make up for lost time.
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
Total sheep and lamb yardings fell slightly this week, but it didn’t help prices, with all major indicators ending lower. Restocker lambs and mutton are
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Softer supply on the run to Australia day boosts market
Next week
The market is very reactive to supply at the moment and looks to be trading either side of the $10/kg mark range. With a public holiday next week, there will be incentives to make up for lost time.
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Click on graph to expand
Data sources: MLA, Mecardo
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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
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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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Total sheep and lamb yardings fell slightly this week, but it didn’t help prices, with all major indicators ending lower. Restocker lambs and mutton are
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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.