Southern buyers sweep up young lambs

Sheep in distance in green paddock

Rain reached patches of central and northern NSW this week but failed to find its way south. The dry spring plaguing much of Victoria and South Australia is being reflected in the variation of numbers and quality, and this week it sent processors North.

Trade lamb prices firmed in all states, with high-yielding lambs in particular attracting attention. The Eastern States Trade Lamb Indicator gathered a few extra cents/kg to end this week at 803¢/kg cwt. It was noted that Victorian processors were the drivers of the market at sales in Wagga this week. The biggest showing of new season lambs this season to date was swept up by southern buyers, particularly chasing young lambs.

In WA, trade lamb prices have been sitting towards the bottom end of the range since winter began. New season trade weights are still light in numbers, with new lambs at store and feeder condition making up the majority of the field at present.

At the heavier end of the scale, the market didn’t hold onto its recent upward trend. The National Heavy Lamb Indicator slipped 10¢ to end the week at 810¢/kg cwt, which is still 28¢ above where it was a month ago.

Restocker and Merino lambs also took a hit this week, losing 35¢ and 33¢ respectively on average. Greener pastures in NSW and more confidence in the season are continuing to see a hefty premium for store lambs in NSW compared to Victoria and South Australia. Restocker buyers in NSW are paying around 100¢ more for restocker-type lambs than in Victoria. We’ve run the numbers on trading opportunities for restocker lambs and merino wethers in recent weeks given the discounts to finished lambs, which are worth a read for those with feed around (view here).

Sheep numbers lifted this week, with early reports suggesting an additional 15 thousand head were yarded at saleyards across the country compared to last week. While no one would question that mutton values are weak at the moment, slightly firmer prices this week in the face of added supply is positive. The National Mutton Indicator gained 6¢ to settle at 276¢/kg cwt. 

Next week

It’s usually at this point in the season when we really see lamb numbers pickup. But given the lag of new season lambs in the south, we may not see much pressure on the market in the form of supply for a little while longer. There is also a good chance of rainfall on the forecast for Victoria in the next week (although we’ve heard that before) which might keep saleyards on the quieter end of normal.

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Click on graph to expand

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Data sources: MLA, Mecardo

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