The Eastern States Trade Lamb Indicator (ESTLI) ended the week at 838¢/kg cwt which was 11¢ lower than the week prior and 13¢ up on the same time last year. In the West, the trade lamb Indicator gained 32¢ over the week, pushing up to 851¢/kg cwt. It’s the first time since August 2020 that the WA trade lamb indicator (WATLI) has been higher than the ESTLI.
Results were mixed in NSW, with light and Merino lambs well sort after. It was further South in Victoria and South Australia that really dragged down the market. Merino lambs were 98¢ lower on the week in Victoria, while Restocker lambs were 35¢/kg cheaper.
No matter which eastern state you look at though, mutton took a significant hit this week. The National Mutton Indicator dropped 45¢ to 575¢/kg cwt. It’s likely that processors are prioritising lambs in their kill while labour availability remains an issue and the peak in domestic lamb demand is here.
The lambs slaughter figures for last week tell the story of continued constraints in slaughter capacity. While east coast lamb slaughter lifted 44% on the week prior, the 273,309 head of lambs processed was 15% fewer than the same time last year and 26% below the five-year seasonal average. East coast sheep slaughter was 32% lower than the same week in 2020 and 51% below average levels.
The West is doing fine on its own
The Eastern States Trade Lamb Indicator (ESTLI) ended the week at 838¢/kg cwt which was 11¢ lower than the week prior and 13¢ up on the same time last year. In the West, the trade lamb Indicator gained 32¢ over the week, pushing up to 851¢/kg cwt. It’s the first time since August 2020 that the WA trade lamb indicator (WATLI) has been higher than the ESTLI.
Results were mixed in NSW, with light and Merino lambs well sort after. It was further South in Victoria and South Australia that really dragged down the market. Merino lambs were 98¢ lower on the week in Victoria, while Restocker lambs were 35¢/kg cheaper.
No matter which eastern state you look at though, mutton took a significant hit this week. The National Mutton Indicator dropped 45¢ to 575¢/kg cwt. It’s likely that processors are prioritising lambs in their kill while labour availability remains an issue and the peak in domestic lamb demand is here.
The lambs slaughter figures for last week tell the story of continued constraints in slaughter capacity. While east coast lamb slaughter lifted 44% on the week prior, the 273,309 head of lambs processed was 15% fewer than the same time last year and 26% below the five-year seasonal average. East coast sheep slaughter was 32% lower than the same week in 2020 and 51% below average levels.
The week ahead….
All National lamb indicators continue to trade at levels higher than 12 months ago so despite the disruption, lamb markets are holding well. We usually see demand weaken post the Australia Day demand peak and prices soften, but it might not be so obvious this year while retailers try to get products on shelves while supply is constrained.
Have any questions or comments?
Click on graph to expand
Click on graph to expand
Click on graph to expand
Data sources: MLA, NLRS, Mecardo
Categories
Have any questions or comments?
Lambs back to 600¢/kg mark
The positivity in the sheep and lamb market has continued to pick up this week, yet to be slowed by the upcoming festive season break
2024 a year of recovery for lamb?
It’s that time of year when we dust off the crystal ball and take a look at what markets are likely to do in 2024.
More rain lifts prices
Widespread rain on the East Coast helped prices continue their upward trajectory, supported by a decrease in throughput as growers’ feed supply concerns further eased.
Lamb turnoff takes precedence
Sheep slaughter for the September 2023 quarter rose year-on-year but dropped in comparison to the previous quarter, the first time this has occurred since 2016.
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.