Lamb prices ended the week lower in most states. It does seem that supply is driving the price moves, with last week’s price improvements on the back of a sharp drop in yardings, and early reports suggesting bigger numbers of young lambs finding their way to Victorian yards this week.

For the week ending the 10th of September, just 135,801 lambs were yarded in the east. This was a 31% drop on the week prior and 11% below the five-year average for this point in the season. NSW was a major driver, 51,082 head fewer lambs were yarded in the state than the week prior. The story was much the same for sheep yardings.

Slaughter did increase slightly last week, however combined sheep and lamb slaughter continued to track below last year’s level and the seasonal average. Sheep and lamb slaughter was 13% below the five-year average.

The Eastern States Trade Lamb Indicator (ESTLI) dropped 17ȼ on the week to sit at 928ȼ/kg cwt. The market was also weaker in the west with the Western Australian Trade Lamb Indicator dropping 16ȼ to 739ȼ/kg cwt.

Restocker lambs in Victoria and South Australia enjoyed stronger demand, and stronger prices. However, restocker prices eased 32ȼ in NSW. Angus Brown looked at the lamb trading equation this week (view here) and despite being close to record highs, store lambs look like reasonable buying, providing finished prices don’t end up lower than 800ȼ.

Mutton prices continued to fall this week, with the National Mutton Indicator dropping another 7ȼ to 608ȼ/kg cwt.

The week ahead….

There is a way to go yet, in rising supply, before chains are full and prices come under significant pressure. It is the surge in Victorian lambs we see during September to November that is usually the catalyst for the ESTLI to reach its seasonal low so a big step down in price isn’t likely to come until the Victorian throughput starts to swell.

Have any questions or comments?

We love to hear from you!
Print This Post

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources: MLA, NLRS, Mecardo

Make decisions with confidence- ask about our board packs, bespoke forecasting and risk management services

Have any questions or comments?

We love to hear from you!
sheep
Sheep

Release the lambs

It’s not only Melbournians that have been released outside the front gate, last week Victorian saleyard throughput figures saw a jump in the number of

Read More »
Percentiles with a background image of hay bales
Cattle

Percentiles – October 2021

Mecardo’s Percentiles update for October 2021. Click below to view the latest report Grains Oilseeds Sheep and lambs Cattle Wool Dairy Fuel Percentiles are an important

Read More »

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

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
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.

Photo of a farmer surrounded by Merino sheep in dusty yards
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. 

Image of harvested grain pouring into a chaser bin
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.