Australia-Sheep and lamb trade.
AUSTRALIA-SHEEP AND LAMB MARKETS.WA sheep summary
Solid supplies continue
Conditions in the Agricultural districts have remained fine and dry. Forecasts are yet to indicate any chance of rain in the foreseeable future. Long range forecasts have predicted that there could be a break to the season around the end of the second or third week of this month. Feed supplies continue to diminish as dry feed has now all but been used with supplementary feeding of grain and hay a necessity.
Lambing activity continues to increase with the majority of early drops now already on the ground with reports of percentages thus far appearing encouraging. With the continued to swing to cropping programmes in preference to livestock production the turnoff of sheep and lambs continues to be unseasonally high. This is evident in both numbers being supplies direct to works and the recent volumes of stock forwarded into saleyards over the past six weeks or so.
This high turnoff of sheep and lambs has also been encouraged by the very strong market conditions and subsequent rates currently available. Processors remain mindful of how quickly supplies could constrict once a wide spread break to the season has been received and continue to advertise forward contractual rates for crossbred lambs. Additionally to this many processor continue to purchase store grades of sheep and lambs having organised either feedlots or agistment. This has added further competition pressure to these plainer conditions classes.
Live export demand also remains very high with this sector also very aware of supply shortages of wethers and rams, particularly heavy weight wethers.
Stable market conditions
There were lower numbers of both sheep and lambs penned at both physical markets, even though the totals remained higher than normal seasonal records. Prime crossbred lamb volumes were slightly more constricted as both weight and conditions were lower in comparison to the previous couple of weeks. Trade demand however remained in line with recent levels as trade weight lambs continued to receive premiums over and above heavier drafts, which have been affected by solid bookings direct to works. The store crossbred lamb market has maintained its high levels of demand from the local trade, feeder and live export sectors.
Merino lamb volumes were maintained with the majority being sold in store condition. Those suitable for slaughter again enjoyed similar trade and live export demand irrespective of sex. Store grades sold to a strong demand from the restocker sector with wether lambs also enjoying an aggressive export feeder demand.
Ewe mutton weight continues to diminish, but despite this processor demand was maintained across the classes, while live export competition was again realised on suitable younger drafts. Both wethers and rams remained sought after with all three live export orders operational in the market.
