Right now, the lamb market is heading in a few different directions. On one hand trade lambs are abundant which is dragging the price down. Store lambs and mutton are also plentiful, and demand is uninspiring. But on the other, heavy lambs supply is tighter and holding prices steady.
The Eastern States Trade Lamb Indicator (ESTLI) lost 11¢ over the week to 639¢/kg cwt. In Western Australia trade lamb prices also came under pressure, losing 16¢ to 502¢/kg cwt. As reported in this week’s analysis (read here) the overflow of trade lambs is a result of the wet conditions.
Heavy lamb prices held steady on last week’s levels, with the National Heavy Lamb Indicator sitting at 688¢/kg cwt. Tight supply of well-finished lambs over 26kg is keeping prices elevated relative to trade lambs.
Restocker lamb prices bounced this week, with the National Restocker Lamb Indicator up 64¢ to 517¢/kg cwt. Given the scale of the price falls over the last few weeks though, restocker lambs are still around 20¢ cheaper than four weeks ago. The Merino lamb market also found momentum, with the National Merino Lamb Indicator picking up 50¢ to 540¢/kg cwt.
The Mutton market traveled sideways this week and appears to have found a level. At 438¢/kg cwt, the National Mutton Indicator is 66¢ higher than four weeks ago and 130¢ below the same time last year. In WA mutton is priced around 215¢ or 48% lower than in eastern states, due to the lack of kill space being reported in WA.
The overflow of lambs is showing up in the saleyard throughput figures. Early yardings reports for this week are already showing over 191K lambs yarded nationally. The five-year average for this point in the season is 169K lambs. Supply of sheep to the yards also remains elevated, with over 110K sheep yarded nationally this week (reported so far).
The ANZAC Day holiday saw weekly slaughter dip last week but this is expected to be short-lived.
The week ahead….
North of the divide many growers are waiting on rain and looking for feed while there is general comfort in the season in the south. There doesn’t look to be much on the forecast for the week ahead, so we’re unlikely to see supply pull up significantly.
Australian sheepmeat exports were lifted in September but remained below year-ago and five-year average volumes on the back of lower domestic slaughter and global trade
The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
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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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Tale of two supply streams
The Eastern States Trade Lamb Indicator (ESTLI) lost 11¢ over the week to 639¢/kg cwt. In Western Australia trade lamb prices also came under pressure, losing 16¢ to 502¢/kg cwt. As reported in this week’s analysis (read here) the overflow of trade lambs is a result of the wet conditions.
Heavy lamb prices held steady on last week’s levels, with the National Heavy Lamb Indicator sitting at 688¢/kg cwt. Tight supply of well-finished lambs over 26kg is keeping prices elevated relative to trade lambs.
Restocker lamb prices bounced this week, with the National Restocker Lamb Indicator up 64¢ to 517¢/kg cwt. Given the scale of the price falls over the last few weeks though, restocker lambs are still around 20¢ cheaper than four weeks ago. The Merino lamb market also found momentum, with the National Merino Lamb Indicator picking up 50¢ to 540¢/kg cwt.
The Mutton market traveled sideways this week and appears to have found a level. At 438¢/kg cwt, the National Mutton Indicator is 66¢ higher than four weeks ago and 130¢ below the same time last year. In WA mutton is priced around 215¢ or 48% lower than in eastern states, due to the lack of kill space being reported in WA.
The overflow of lambs is showing up in the saleyard throughput figures. Early yardings reports for this week are already showing over 191K lambs yarded nationally. The five-year average for this point in the season is 169K lambs. Supply of sheep to the yards also remains elevated, with over 110K sheep yarded nationally this week (reported so far).
The ANZAC Day holiday saw weekly slaughter dip last week but this is expected to be short-lived.
The week ahead….
North of the divide many growers are waiting on rain and looking for feed while there is general comfort in the season in the south. There doesn’t look to be much on the forecast for the week ahead, so we’re unlikely to see supply pull up significantly.
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Data sources: MLA, Mecardo
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Exports find support in September
Australian sheepmeat exports were lifted in September but remained below year-ago and five-year average volumes on the back of lower domestic slaughter and global trade
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The saying that history doesn’t repeat itself, but it rhymes, is certainly applicable to livestock markets. Having just seen the lowest September lamb slaughter in
Holding pattern ahead of the long weekend.
With the impending long weekend in NSW, the market was in a bit of a holding pattern this week, as most of the major indicators
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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.
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.