Lamb slaughter has been consistently stronger than the same period last year in recent weeks. While the export demand is there, it hasn’t been enough to completely relieve the pressure on lamb prices with all finished lamb and sheep indicators sitting lower year on year.
East coast lamb slaughter totalled 337,908 head last week which was 7% higher than the same week in 2021 and just 2% under the five year seasonal average. Kill space was prioritised for lambs over sheep with mutton slaughter dropping to 55,680 head in the east, a 37% decline on the week prior and 26% below the same week last year.
Lamb throughput in eastern saleyards slid 1.4% compared to the week prior, with all states bar Victoria showing a decline in yardings. In WA lamb yardings almost halved, with just 6,405 head passing through.
The Eastern States Trade Lamb Indicator dropped 29¢ over the week to 777¢/kg cwt. The indicator has been moving within a 32¢ band since mid March and is currently on the low side of that range. In the West, thin lamb numbers at saleyards have caused a lot of volatility in the price indicators. Trade lambs in WA jumped 160¢ back to 707¢ this week.
The National Heavy Lamb Indicator fell 10¢ to 775¢/lg cwt over the week . The gap between trade and heavy weight lambs narrowing further. Restocker lambs remained reasonably steady while Merino lambs picked up another 21¢ over the week. If we compare the National indicators to the same time last year, it’s light lambs that are the only category sitting higher, even if just by 11¢.
The National Mutton Indicator lost just 2¢ over the week to 617¢/kg cwt.
The week ahead….
Lamb prices typically track sideways through June as supply starts to tighten but based on MLA’s forecast, supply is expected to be stronger this year than last. We know exports make up a large proportion of lambs sales, and with the low AUD there is room for them to pay more. This should be enough to limit downside at least if supply pressure unfolds.
Australia’s total sheepmeat exports dropped 3% year-on-year for the month of May but remains 1% above 2024 for the year-to-date. Trump and all his tariff
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Stronger slaughter, lower prices
East coast lamb slaughter totalled 337,908 head last week which was 7% higher than the same week in 2021 and just 2% under the five year seasonal average. Kill space was prioritised for lambs over sheep with mutton slaughter dropping to 55,680 head in the east, a 37% decline on the week prior and 26% below the same week last year.
Lamb throughput in eastern saleyards slid 1.4% compared to the week prior, with all states bar Victoria showing a decline in yardings. In WA lamb yardings almost halved, with just 6,405 head passing through.
The Eastern States Trade Lamb Indicator dropped 29¢ over the week to 777¢/kg cwt. The indicator has been moving within a 32¢ band since mid March and is currently on the low side of that range. In the West, thin lamb numbers at saleyards have caused a lot of volatility in the price indicators. Trade lambs in WA jumped 160¢ back to 707¢ this week.
The National Heavy Lamb Indicator fell 10¢ to 775¢/lg cwt over the week . The gap between trade and heavy weight lambs narrowing further. Restocker lambs remained reasonably steady while Merino lambs picked up another 21¢ over the week. If we compare the National indicators to the same time last year, it’s light lambs that are the only category sitting higher, even if just by 11¢.
The National Mutton Indicator lost just 2¢ over the week to 617¢/kg cwt.
The week ahead….
Lamb prices typically track sideways through June as supply starts to tighten but based on MLA’s forecast, supply is expected to be stronger this year than last. We know exports make up a large proportion of lambs sales, and with the low AUD there is room for them to pay more. This should be enough to limit downside at least if supply pressure unfolds.
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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.
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.