The imminent start of winter has brought with it the rain and it has delivered. The west finally got the drink it so desperately needed, and there is some more to follow according to the forecasts. The market had mixed results, with the two-speed market trend continuing to widen. Yardings fell week on week and slaughter levels remain elevated for both lamb and sheep.
After many months of missing out, rain finally fell in the west. Lamb and sheep prices in WA had mixed results, but mainly rose week on week despite a lift in saleyard throughput. Trade lamb prices in WA were up 11% to 530 c/kg with a slight decrease in yardings. Light lambs rose the most in regard to value, with an increase of 6% (18 c/kg) to finish the week at 288 c/kg. Headcount for the light lambs also rose 48% for a total throughput of 3.6k head. Mutton lifted as well, up 3% to 180 c/kg and its yardings were up 44% to 3.9k head.
Moving back to the eastern states, the Eastern States Trade Lamb Indicator (ESTLI) was up 1% (4 c/kg) on the week prior to finish the week at 689 c/kg. Yardings for the indicator fell away by 11% to 27.9 k head. Wagga and Ballarat had the largest contributions to the ESTLI for the week and both saleyard reports mention a two-speed market with buyers competitive for the high-end quality pens, and cautious not to drive the price up on the plainer pens. As we enter the winter cycle of the market and towards to end of the lamb season the quality mix broadens.
The National Mutton Indicator fell by 1% to 306c/kg with yardings for the indicator back 11% (10.4k head). At the other end of the age spectrum, restocker lambs in the eastern states averaged 625 c/kg and was up 3% for the week. Yardings for the restocker lambs were flat week on week.
Heavy lamb prices on the east coast also increased slightly by 2% (15 c/kg) to close the week at 699 c/kg. A smidge short of the 700c/kg mark where it was last at in early February. Throughput for heavy lambs on the east coast actually increased 11% week on week, indicating robust demand for the export kill ready lambs.
Slaughter for the week prior held steady for lamb and sheep combined. East coast lamb slaughter remains elevated compared to the same week last year (15%) and the 5 year average (34%). For sheep, slaughter levels are even more elevated, nationally last week 188k sheep were slaughtered which is 75% above the 5-year average. Year to date on average the sheep slaughter rate has been 47% above the 5-year average.
Next week
First selling week for winter should see the two-speed trend continue. Supply is strong from the paddock and despite the recent rain and chance of some more on the forecast, it will not instantly alleviate those with feed supply issues. This will allow buyers to remain selective in their purchasing decisions, although we are still seeing strong demand for quality which can pull prices up.
No discounts for lambs at saleyards this week for EOFY as the majority of indicators saw double-digit improvements. The National Restocker lamb indicator was up
Week-on-week yardings for the indicators surged with all saleyards in operation following last week’s long weekend. Prices fell across the board, off the back of
A couple of weeks ago Mecardo looked at the Australian Bureau of Statistics (ABS) quarterly lamb slaughter data, showing March was the largest quarter on
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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.
Two speed spread grows
After many months of missing out, rain finally fell in the west. Lamb and sheep prices in WA had mixed results, but mainly rose week on week despite a lift in saleyard throughput. Trade lamb prices in WA were up 11% to 530 c/kg with a slight decrease in yardings. Light lambs rose the most in regard to value, with an increase of 6% (18 c/kg) to finish the week at 288 c/kg. Headcount for the light lambs also rose 48% for a total throughput of 3.6k head. Mutton lifted as well, up 3% to 180 c/kg and its yardings were up 44% to 3.9k head.
Moving back to the eastern states, the Eastern States Trade Lamb Indicator (ESTLI) was up 1% (4 c/kg) on the week prior to finish the week at 689 c/kg. Yardings for the indicator fell away by 11% to 27.9 k head. Wagga and Ballarat had the largest contributions to the ESTLI for the week and both saleyard reports mention a two-speed market with buyers competitive for the high-end quality pens, and cautious not to drive the price up on the plainer pens. As we enter the winter cycle of the market and towards to end of the lamb season the quality mix broadens.
The National Mutton Indicator fell by 1% to 306c/kg with yardings for the indicator back 11% (10.4k head). At the other end of the age spectrum, restocker lambs in the eastern states averaged 625 c/kg and was up 3% for the week. Yardings for the restocker lambs were flat week on week.
Heavy lamb prices on the east coast also increased slightly by 2% (15 c/kg) to close the week at 699 c/kg. A smidge short of the 700c/kg mark where it was last at in early February. Throughput for heavy lambs on the east coast actually increased 11% week on week, indicating robust demand for the export kill ready lambs.
Slaughter for the week prior held steady for lamb and sheep combined. East coast lamb slaughter remains elevated compared to the same week last year (15%) and the 5 year average (34%). For sheep, slaughter levels are even more elevated, nationally last week 188k sheep were slaughtered which is 75% above the 5-year average. Year to date on average the sheep slaughter rate has been 47% above the 5-year average.
Next week
First selling week for winter should see the two-speed trend continue. Supply is strong from the paddock and despite the recent rain and chance of some more on the forecast, it will not instantly alleviate those with feed supply issues. This will allow buyers to remain selective in their purchasing decisions, although we are still seeing strong demand for quality which can pull prices up.
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Data sources: MLA, BOM, Mecardo
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No discounts for lambs at saleyards this week for EOFY as the majority of indicators saw double-digit improvements. The National Restocker lamb indicator was up
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Week-on-week yardings for the indicators surged with all saleyards in operation following last week’s long weekend. Prices fell across the board, off the back of
Lamb market lining up like 2018
A couple of weeks ago Mecardo looked at the Australian Bureau of Statistics (ABS) quarterly lamb slaughter data, showing March was the largest quarter on
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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.
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.
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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.