Australia-Lamb market this week.

Sheep and lamb market alert

1/04/2009

Lamb supply lifts

Due to the high lamb prices and the dry start to the autumn, national lamb supply lifted 10% at MLA’s NLRS reported saleyards so far this week. Ongoing competition between processors, restockers and feeders, due to an anticipated shortage of lambs, is aiding to a dearer trend at physical markets.

The quality of lambs has been very mixed with a large percentage of lightweight lambs offered. Supplementary finished lambs are meeting strong competition from processors. There have also been occurrences of additional interstate buyers in Victoria and NSW.

National mutton yardings rise

Due to strong mutton prices experienced at physical markets, mutton throughput has risen 13% so far this week, when compared to the same time last week. Deteriorating seasonal conditions, particularly in the southern parts of the states have also encouraged producers to offload sheep. Strong competition between buyers and, particularly in WA live exporters are encouraging dearer trends.

Ewes account for 75% of the total offering, and when compared to Monday and Tuesday of last week, their percentage of the mutton yarding has decline slightly. There have been more medium weight ewes offered and 25% less lightweight ewes at physical markets. Wethers are in small numbers, and are mostly medium weights.

Indicators strong

At the close of Tuesday’s markets the eastern states sheep and lamb indicators gained ground from the previous week. Restocking lamb was 3¢ dearer at 407¢, while Merino lamb was slightly cheaper at 368¢/kg cwt. Light lamb jumped 14¢ to finish at 396¢, while trade lamb lifted 5¢ to 455¢/kg cwt. Heavy lamb was 4¢ dearer to settle at 464¢/kg cwt. Mutton was 3¢ higher at 216¢/kg cwt.