Latest sheep market update

Prices for sheep and lambs have rallied through June as heavy turnoff shows signs of slowing. Lamb slaughter remains 22 per cent above last year and 27 per cent above the 5 year average, while sheep slaughter is 13 per cent above last year and 47 per cent above the 5 year average. Despite this slaughter ready lambs gained another 16 per cent in value, while mutton prices gained 13 per cent.

Supporting values has been a lift in demand across Middle East and the US which has more than offset lower volumes into China and has helped to absorb higher Australian production. 

Over the next 6 weeks sheep and lamb slaughter will start to fall ahead of the first new season’s lamb in late August/early spring. This will support prices as will a decline in competition from New Zealand as it enters its seasonal slowdown in production.

Heavy export lambs lead the way

Heavy export lamb values continue to lead the way. The competitiveness of lamb vs other proteins in the US has been one factor whilst tighter availability of these lambs in Australia is another. The poor spring has meant that growing lambs out this year has proven challenging with some producers opting to sell at lighter weights. This market looks to be well supported until the new season lambs can reach these weights in late spring.

Heavy lamb indicator c/kg lw

The table shows the heavy weight lamb saleyard indicator price for each state against last week, last month and last year. Source: MLA

Lamb enjoys increased demand at home

Last year lamb prices fell to levels not seen for nearly a decade. These low prices have done their job and won some domestic demand back for lamb. Trade lamb prices are now working back above the 5 year average. Prices will start to come under pressure by mid to late August when supplies of new seasons lambs hit the market.

Trade lamb indicator c/kg lw

The table shows the trade weight lamb saleyard indicator price for each state against last week, last month and last year. Source: MLA

Restocker lamb values flatten

Its almost becoming too late for producers to feed lambs targeting the late winter market. With pastures starting to show the effects of winter, demand for restocker lambs from graziers has started to wane. Soon this old season lambs will have to compete with fresh new season lamb supplies.

Restocker lamb indicator c/kg lw

The table shows the restocker lamb saleyard indicator price for each state against last week, last month and last year. Source: MLA

Sheep indicator c/kg lw

The table shows the sheep saleyard indicator price for each state against last week, last month and last year. Source: MLA.

Sources: Price data reproduced courtesy of Meat & Livestock Australia Limited.