News

Strong throughput numbers for both lamb and mutton across the nation this week saw falls recorded in all national sale yard indicators, ranging between 3$ to 9 %.  The headline Eastern States Trade Lamb Indicator (ESTLI) dropping 9.4% to close at 601/kg, while mutton was equally weak, off 8.8% to 385¢.

The East coast sale yard indicators mostly mirroring the national falls, with many categories posting declines between 2% to 12%. In Victoria, Merino Lambs the weakest, falling 9% to 558¢, while in NSW Restockers took the heat with a 12% drop to 598¢.

Victorian and NSW lamb yardings shown to be running above average for this time of the year and this saw East coast throughput lift 33% on the week to sit 28% higher than the seasonal average for this time in the year – Figure 1.

Higher NSW mutton yarding the key behind the elevated East coast figures too this week – figure 2. NSW sheep thoughput currently 34.7% over the seasonal average level for this week in the year and the added numbers of mutton has pushed the East coast levels over 100,000 head this week, an 18.7% gain on the seasonal average.

Western Australian indicators for Merino Lamb and Mutton were particularly soft, both off 19% to 509¢ and 370¢, respectively. High throughput the likely culprit there too with WA mutton yarding levels showing a solid surge this week with 27,000 head recorded – an increase over the seasonal average of 66.3% – Figure 3.

What does it mean/next week?:

A wetter week is anticipated, particularly in the West, and this should stem some of the price declines experienced by producers this week. The BOM have forecast a higher chance for a wetter than average February and there hasn’t been much for the East coast for the first few weeks of the month – perhaps that means the second half of the month we will be some decent falls… fingers crossed.