After a relatively stable few weeks, an increase in yardings and a softening of competition in the buying field applied downward pressure on prices this week. New season lamb numbers continue to build in quantity, supported by buyers willing to travel to fill their orders.
The
Eastern States Trade Lamb Indicator was back 4% in value week on week, ending
the selling week at 813 c/kg. Yardings for the week increased by 7%, to 38.5k
head, Wagga had 25% contribution to the volume, and averaged slightly below the
indicator at 797 c/kg.
Mutton
prices had the largest fall this week in value with the National Mutton
indicator down 11%, closing at 314 c/kg. A 5% increase in supply from the
paddock not helping the price. Wagga again the largest contribution to the
indicator for volume and averaging below in value at a 10% discount (284 c/kg).
Restocker
lambs trended against the market direction, the indicator closing the selling
week up 4% to 660 c/kg despite a 27% increase in yardings. Wagga averaged over
$1/kg above the indicator, thanks to a 900% increase in new season lambs on the
week prior according to its saleyard report, with southern buyers the most
active. The increase in prices occurred despite the downwards pressure coming from
supply, pointing to renewed demand from the restocker buying group.
The
Western State Trade Lamb Indicator climbed 4% in value off the drop in yardings
for the week. It ended the selling just under the $7/kg mark at 692 c/kg,
closing the west to east discount to 15%.
New
season lambs are growing in supply, although some are still waiting for the full
onslaught. Sale yards reporting large numbers were Wagga and Forbes with 20k
head and 9.5k head respectively. Ballarat’s saleyard report mentions some of
their regular buyers heading north to where the new season lambs are “available
in bigger numbers”.
Yardings for the week surged on the week prior with initial
data from the NRLS showing a 18% increase in total Lamb and sheep numbers to 326.5k
head. Lambs had the larger 19% increase compared to sheep at 17%.
Slaughter levels for the week prior were down slightly for
total lamb and sheep. The decrease driven from a 16% drop in sheep slaughter in
NSW compared to the week before. Comparing to this time last year, the number
of lambs processed in the east last week was 12% lower year-on-year. However,
the spring lamb season was more advanced by this point last year, prices were
tanking, and slaughter had moved towards recording the highest weekly level
ever for September.
Next week
The market will continue to find its balance, with new season lambs continuing to grow in volume and hopefully the renewed optimism in the restockers remains if the rainfall forecast for the east becomes a reality. Slaughter is likely to pick back up as more and more lambs enter the market, as processors keep up with domestic consumer demand increasing as BBQs come back on the menu with spring heating up.
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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.
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Spring supply mounting in NSW
The Eastern States Trade Lamb Indicator was back 4% in value week on week, ending the selling week at 813 c/kg. Yardings for the week increased by 7%, to 38.5k head, Wagga had 25% contribution to the volume, and averaged slightly below the indicator at 797 c/kg.
Mutton prices had the largest fall this week in value with the National Mutton indicator down 11%, closing at 314 c/kg. A 5% increase in supply from the paddock not helping the price. Wagga again the largest contribution to the indicator for volume and averaging below in value at a 10% discount (284 c/kg).
Restocker lambs trended against the market direction, the indicator closing the selling week up 4% to 660 c/kg despite a 27% increase in yardings. Wagga averaged over $1/kg above the indicator, thanks to a 900% increase in new season lambs on the week prior according to its saleyard report, with southern buyers the most active. The increase in prices occurred despite the downwards pressure coming from supply, pointing to renewed demand from the restocker buying group.
The Western State Trade Lamb Indicator climbed 4% in value off the drop in yardings for the week. It ended the selling just under the $7/kg mark at 692 c/kg, closing the west to east discount to 15%.
New season lambs are growing in supply, although some are still waiting for the full onslaught. Sale yards reporting large numbers were Wagga and Forbes with 20k head and 9.5k head respectively. Ballarat’s saleyard report mentions some of their regular buyers heading north to where the new season lambs are “available in bigger numbers”.
Yardings for the week surged on the week prior with initial data from the NRLS showing a 18% increase in total Lamb and sheep numbers to 326.5k head. Lambs had the larger 19% increase compared to sheep at 17%.
Slaughter levels for the week prior were down slightly for total lamb and sheep. The decrease driven from a 16% drop in sheep slaughter in NSW compared to the week before. Comparing to this time last year, the number of lambs processed in the east last week was 12% lower year-on-year. However, the spring lamb season was more advanced by this point last year, prices were tanking, and slaughter had moved towards recording the highest weekly level ever for September.
Next week
The market will continue to find its balance, with new season lambs continuing to grow in volume and hopefully the renewed optimism in the restockers remains if the rainfall forecast for the east becomes a reality. Slaughter is likely to pick back up as more and more lambs enter the market, as processors keep up with domestic consumer demand increasing as BBQs come back on the menu with spring heating up.
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Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
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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.
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.
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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.