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.
A short week, and closed saleyards on Thursday has culminated in some relief on the supply front as combined lamb and sheep yardings nationally dropped
Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
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.
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.
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.
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.
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?
44% drop in supply springs market into action
A short week, and closed saleyards on Thursday has culminated in some relief on the supply front as combined lamb and sheep yardings nationally dropped
Winter is coming, where will lamb land?
While many are focussed on the Anzac Day market of a good autumn break, and whether more rain – or any rain at all for
Sheep meat price volatility
The drop in sheep meat prices in 2023 came as an unwelcome shock after the better part of a decade of rising prices. This article
Light lambs grounded
Despite a decrease in yardings week on week, the tightening of supply was not enough to support prices. Middle East airspace closures impacted demand at
Want market insights delivered straight to your inbox?
Sign up to the mailing list to get regular updates to new analysis and market outlooks
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.