Australia-Lamb and mutton trade.
AUSTRALIA-LAMB AND MUTTON TRADE.
This week, mutton supply declined 2% on last week at MLA’s NLRS reported saleyards. The majority of those offered were medium weight ewes purchased by processors. Of the national mutton offering, 31% were lightweight sheep, 54% were medium weights and 15% were heavy mutton. Mutton quality has been reasonable, although plainer drafts are becoming more apparent at physical markets. The vast majority of the mutton offered were unshorn and displayed signs of dryness, such as parting wool and dry tips. This has been a result of the hot conditions experienced over the past few weeks.
Generally, mutton prices have been dearer, with increasing competition from buyers to secure supplies, as they anticipate a shortfall in the coming months. Restockers have also been showing some interest to manage stubbles. Live exporters have been active, increasing competition particularly at centres in WA. With limited numbers of heavyweights available, there has been intense competition on the medium weights, pushing prices higher.
At the conclusion of Thursday’s markets, the eastern states mutton indicator averaged 191¢, 14¢ higher than last week and 1¢/kg cwt below the same time last year.
Lamb prices still at 500¢/kg cwt in WA
For the second week in a row, lamb prices at MLA’s NLRS Western Australian reported saleyards topped at 500¢/kg cwt. The stronger prices have also spread to mutton, with a number of sales over 250¢/kg cwt.
WA trade lamb rates ended this week at 434¢, 11¢ below last week and 155¢/kg cwt above the same time last year. Heavy lambs lost 19¢ from last week to settle at 461¢kg cwt, 175¢ higher than last year.
Numbers at physical markets lifted 11% for lambs and 5% for sheep compared to last week. This has been a result of the strong demand from both processors and the live export sector, despite lamb quality slipping. Trade weight lambs represented 22% of the total lamb offering. Lightweights were well supplied, and accounted for 44% of the total lambs yarded. Most of the mutton offered were medium weight ewes with wethers increasingly difficult to source.
Increased demand, higher prices
This week, the national trade lamb indicator rose 20¢ on last week to 420¢/kg cwt. Heavy lambs lifted 29¢, to 435¢/kg cwt. Compared to the same time last year, the trade lamb indicator is 45¢ higher and heavy lamb prices are up 78¢/kg cwt. Current prices are at the highest levels since September 2008.
This week saw increasing numbers of plainer quality drafts and more heavy lambs becoming available. There has been increasing competition between processors and restockers on better quality drafts of light and trade weights and this has placed upward pressure
on prices.
The recent rains in north western NSW resulted in smaller yardings at Dubbo, Inverell and Tamworth this week. The cooler weather experienced over the past week has helped producers’ confidence, as some opt to hold onto stock. Nationally, supply has been relatively stable with lamb yardings improving 1% on last week.
