MLA’s weekly cattle and sheep market wrap
26 August 2021
Key points:
- Both lamb and young cattle prices hit all-time records this week
- Victorian processor capacity slashed by 20%
- Weekly cattle slaughter above 2020 levels for the first time all year
Lambs
It has been a record-breaking week for both lamb and cattle livestock prices. The National Trade Lamb Indicator (NTLI) broke the 950¢/kg mark for the first time ever – reaching 951¢/kg on Monday 23 August. The rise was driven by new season lambs hitting the market commanding a premium.
As of Wednesday 25 August, the NTLI has fallen to 931¢/kg, a drop of 2% from the highs of Monday.
Cattle
Rain in Queensland drove the Eastern Young Cattle Indicator (EYCI) higher this week. It rose 3%, hitting 1,031c/kg cwt on Wednesday. The increase has been driven by the recent rainfall and a promising upcoming forecast, with restockers overtaking feeders as the main buying category again.
OTH prices
Like lamb and cattle saleyard prices, over-the-hooks prices are at record levels at the moment. Cattle OTH prices are being driven up by short supply – WA and Victorian steer prices are the highest at 766¢/kg cwt and 745¢/kg, respectively.
Cattle slaughter
Last week, for the first time in 2021, weekly slaughter volumes exceeded those for the same time last year. Weekly slaughter reached 102,900 head, a jump of 8,000 from the previous week.
Victorian abattoirs
This week, the Victorian Government implemented a 20% reduction in processing capacity for Victorian plants. This is in addition to the temporary closure of Fletchers in Dubbo.
The closures come at a time when the state is preparing for the spring flush, when lamb sales are expected to be significantly elevated on the back of higher marking rates and an improved season. It remains to be seen if the closures will have an impact on lamb prices – especially considering the state experienced similar closures last year.
© Meat & Livestock Australia Limited, 2021
