Weekly cattle and sheep market wrap
21 April 2023
Key points:
- Market reporting update: Next week’s ANZAC Day public holiday will impact slaughter and indicators.
- Sheep: Mutton prices surged 70¢/kg.
- Cattle: Roma had a huge yarding of nearly 8,000 head.
Market reporting update
There will be no National Livestock Reporting Service (NLRS) slaughter report this week. The report will return on Wednesday 26 April.
No sales will proceed on Tuesday 25 April (ANZAC Day). Therefore, there will be no market reporting for the following sales:
- Roma (cattle)
- Forbes (sheep)
- Inverell (cattle)
- Camperdown (cattle)
- Barnawartha (cattle)
- Gunnedah (cattle)
- Naracoorte (cattle)
- Carcoar (cattle)
- Shepparton (cattle)
- Muchea (sheep)
- Northern Tasmania (cattle)
- Scone (cattle)
- Ballarat (sheep)
- SA Livestock (sheep and cattle)
- Warwick (cattle)
These sale omissions will affect indicators next week.
Wrap-up of this week
Supply
This week was the only full week of trading in April. The lack of sale days this month traditionally makes it difficult to get a good understanding of how the market is operating, as indicators are affected by the reduction in scheduled markets.
Roma had throughput of nearly 8,000 head this week, an increase of 5,913 head or 328%. This was because Easter impacted supply in early April, as well as the fact the Roma sale will not be on next week. Gunnedah, another Tuesday sale, experienced a close to 10-fold increase in cattle to compensate for the next sale not going ahead.
Indicators
It was a generally positive start to the week, with cattle and sheep indicators improving week-on-week through to Wednesday 19 April.
The trade lamb indicator rose 13.5¢/kg this week, with supply also increasing – an interesting economic phenomenon that shows current pricing levels are driven by demand, not supply.
WA trade lamb prices remain 100¢/kg below the national benchmark – operating in the 500–600¢/kg range.
There is only a 4¢/kg difference between the heavy and trade lambs at the moment. This time last year, trade lambs were commanding >30¢/kg premium to heavy lambs. In 2022, there were more heavy lambs on the market due to seasonal conditions. The greater supply of unfinished lambs this year has eroded the trade lamb premium when compared to heavy lamb prices.
Restocker lambs and light lamb prices remain below 600¢/kg, but interestingly, restocker lamb prices overtook light lambs this week, indicating that restockers are paying more than processors for lambs at present.
Mutton was the big winner this week – up 70¢/kg while supply tripled. The mutton price in Wagga Wagga, Forbes and Ballarat is 10% above the national price.
The Eastern Young Cattle Indicator (EYCI) rose 9¢/kg this week or 1.5%, with close to 16,000 animals going through the indicator. Prices in Wagga Wagga were the highest – 10% above the EYCI as a whole at 748¢/kg.
Interestingly, processors are buying more cattle out of the saleyard, growing the number of animals they are purchasing, and their market share – reducing the numbers being bought by restockers.
Feeder steer prices are up 3% this week, with supply also up. A greater percentage of feeder animals have been over 400kg, while there have been less animals in the 280–330kg range ending up in feedlots. This may highlight that costs of grain may be tightening in the sector.
There has been a 50% increase in supply of processor cows since the start of the month – but no negative pricing impacts have been experienced.
