East coast lamb yardings last week continued to track at close to five-year average levels, with 172,915 head yarded. Sheep throughput tested the upper range of what is expected at this time of year, with 74,834 head yarded, 23% higher than the five-year average.
Weekly slaughter figures suggest processors have been pushing to maximise kill rates after the short weeks in April. The first two weeks of May each saw 350k lambs processed, which was stronger than the same period in 2021, and just shy of the five-year seasonal average.
The wet weather and recently cheaper market was likely to have kept stock away from yards this week, lending support to price. The Victorian market was also propped up by a supply delay from Tassie, with ships reportedly unable to move due to bad weather.
The Eastern States Trade Lamb indicator moved up 32¢ to 806¢/kg cwt, which is just 7¢ below the same time last year. In the west, trade lambs lost 59¢ over the week to settle at 548¢/kg cwt. A harsh number to swallow, given in March this year trade lambs were selling for 800¢+ there.
The biggest move higher on a national basis this week came from restocker lambs and mutton, jumping nearly 60¢ each. Prices for these categories improved in all states, but South Australia and Victoria were the standouts. The National Mutton Indicator finished the week at 619¢/kg cwt, 17¢ lower than the same time last year.
Still ships and soggy paddocks drive correction
East coast lamb yardings last week continued to track at close to five-year average levels, with 172,915 head yarded. Sheep throughput tested the upper range of what is expected at this time of year, with 74,834 head yarded, 23% higher than the five-year average.
Weekly slaughter figures suggest processors have been pushing to maximise kill rates after the short weeks in April. The first two weeks of May each saw 350k lambs processed, which was stronger than the same period in 2021, and just shy of the five-year seasonal average.
The wet weather and recently cheaper market was likely to have kept stock away from yards this week, lending support to price. The Victorian market was also propped up by a supply delay from Tassie, with ships reportedly unable to move due to bad weather.
The Eastern States Trade Lamb indicator moved up 32¢ to 806¢/kg cwt, which is just 7¢ below the same time last year. In the west, trade lambs lost 59¢ over the week to settle at 548¢/kg cwt. A harsh number to swallow, given in March this year trade lambs were selling for 800¢+ there.
The biggest move higher on a national basis this week came from restocker lambs and mutton, jumping nearly 60¢ each. Prices for these categories improved in all states, but South Australia and Victoria were the standouts. The National Mutton Indicator finished the week at 619¢/kg cwt, 17¢ lower than the same time last year.
The week ahead….
Whether the price spike was a dead cat bounce or a return to market balance will be revealed next week. Many producers in western Vic and south east SA are still waiting on a solid autumn break, while broadly other regions have received average-above average rainfall in the last month or two.
A weak Australian dollar, combined with robust offshore demand for Aussie lamb/sheep exports should continue to provide support across ovine markets.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, Mecardo
Categories
Have any questions or comments?
International sheep meat supply and lamb price
Some three-quarters of Australian sheep meat by volume is exported, so prices for mutton and lamb are heavily influenced by overseas markets. In this article,
Energy costs for cattle & sheep processing.
The energy crisis hitting Australia has caused a great deal of speculation about the impact of price rises upon the Aussie manufacturing sector, particularly meat
Mutton & restocker lambs take a dive
The lamb and sheep market was in an ugly state this week, with last week’s theme repeated, as sheep and restocker lamb prices tumbled. Somehow
Percentiles – June 2022
Mecardo’s Percentiles update for June 2022. Click below to view the latest report Grains Oilseeds Sheep and lambs Cattle Wool Dairy Fuel Percentiles are an important
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
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.
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.