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.
The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
Australian sheep and lamb exports increased in September but remained subdued in relation to recent trends. The US took dominant market share for the month,
The sheep and lamb market showed some resilience this week as yardings backed off slightly but remained at their second-highest level since June. Merino lambs
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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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The big spring store sales are progressing through the Riverina, and it coincides with rapid spring growth in high rainfall zones further south and east.
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The story of supply has been driving the market since Winter, and demand has been reactive. Last week, there was movement at the station when
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Australian sheep and lamb exports increased in September but remained subdued in relation to recent trends. The US took dominant market share for the month,
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The sheep and lamb market showed some resilience this week as yardings backed off slightly but remained at their second-highest level since June. Merino lambs
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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.
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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.