Australia-Lamb market this week
Lamb and sheep market wrap
20/03/2009
Heavy lamb supplies improve
Lamb supply at MLA’s NLRS reported saleyards lifted 7%, to 192,066 head. There was a six percentage point increase in the proportion of heavy lambs yarded, to account for 24% of the national yarding. Lightweight lambs accounted for 38%, while trade lambs made up 37% – both down on last week.
Favourable heavy lamb prices, combined with improved feed availability and lower grain prices have seen increasing numbers of lambs finished at heavier weights. Some producers have also held onto feed grain from the harvest, which has also boosted the number of lambs being finished.
With fewer trade lambs offered, competition for finished lambs intensified, with some trade and supermarket buyers competing for the light end of the heavy lamb category to secure supplies.
The number of heavy lambs between 22-24kg cwt yarded increased 37% on last week, while the 24-26kg cwt category recorded a 45% increase and lambs weighing over 26kg cwt jumped 205%.
Eastern states sheep and lamb indicators climb
Eastern states sheep and lamb indicators lifted between 11¢ and 34¢/kg cwt on last week. With a number of plainer quality stock offered at MLA’s NLRS reported markets, competition among buyers intensified for good quality lines, while tighter supplies across most categories supported the dearer trend.
At the close of Thursday’s markets, restocker lambs finished 24¢ dearer, at 419¢, while Merino lambs ended the week 34¢ higher, at 370¢/kg cwt. Light lambs jumped 24¢, to 388¢, while trade lambs gained 17¢ on last week, to settle at 440¢/kg cwt. Heavy lambs were also dearer, lifting 11¢ to 447¢/kg cwt, while mutton climbed 15¢, to finish at 216¢/kg cwt.
Higher yardings and prices for mutton
Mutton supply at MLA’s NLRS reported saleyards since the start of 2009 has been 6% higher than the same period last year, as the dry summer and extreme temperatures in the southern states encouraged producers to offload stock.
Despite this small increase in yardings, mutton prices averaged higher over the period due to strong competition from processors, live exporters and restockers. Over the hooks rates for sheep have also been on a steady rise as some processors work to secure supplies to keep plants operating.
Mutton quality has varied since the start of the year, with ewes consistently accounting for the largest percentage of the yarding, and light and medium weights dominating the mix. Lightweight ewes accounted for 25% of the national offering, while lightweight wethers contributed just 5%. Medium weight ewes accounted for 45%, while medium weight wethers accounted for 10%. Heavy weight sheep were scarce by comparison, with ewes making up 12% of the sheep yarded over the period and heavy wethers just 3%.
The national mutton indicator finished Thursday at 216¢, 26¢/kg cwt higher than the same week last year. Sheep prices are expected to remain strong over coming months, as the unsustainably high sheep turnoff is likely to lead to a shortfall in sheep numbers.
