Weekly sheep and cattle market wrap

Cattle

In the first full week of cattle sales for 2023, the market delivered some valuable insights for producers and the industry more broadly.

Overall, the market and prices eased in the final weeks of selling for 2022 and are significantly below the record highs experienced 12 months prior during January of last year where all indicators broke records.

Despite softening in prices, market commentary across the saleyards this week identifies that quality bred and finished stock are continuing to demand premiums to the general market and are the least affected in terms of price compared to previous sales. This trend will continue to remain a hallmark of 2023 and prices paid for better bred and finished animals will remain constant.

Table 1. Current cattle prices against December and January 2022

As reflected in the table above, the market has corrected in the first selling week of 2023 to a point where buyers are prepared to operate within. It is important to remember that 2022 market conditions at the opening of the year were at record highs, and since then an intense 12 months of rebuilding stock and elevated prices have followed.

The month of January is a challenging time to fully conceptualise and understand market performance. It is expected that by mid-February, a better picture of the market’s conditions will eventuate. Not all processors operating in the market in the first half of the January due to plant closures.  Additionally, the holiday period also impacting the producer and lot feeder presence.

Sheep and lambs

The sheep and lamb market has begun 2023 stronger than where it ended in 2022 across most categories. There is evidence that buyer demand and processor interest remain strong, with significant volumes of lamb and mutton available as the flock growth continues.

The cold and wet winter held back many lambs from the spring flush in 2022 and these will now hit the market in the first half of 2023. It is expected market conditions will operate similarly to the first half of 2022 where the same set of conditions occurred.

Table 2: Current sheep and lamb prices against December and January 2022

Similarly to cattle, perspective is an important consideration when viewing the above table. Comparatively, the sheep and lamb market at this stage in January 2022 was receding from the record highs it set in the second half of 2021. The easing of prices seen throughout 2022 and evidently the beginning of this year demonstrates the market returning to longer term values.

Despite the significant supply of lambs in 2022 delivering the record lamb export volumes of 284,000 tonnes, market prices in early 2023 are performing resiliently well.

Cattle Projections webinar

On Thursday 2 February at 11am AEDT, the MLA Market Information team will be conducting its annual live webinar, presenting on the forecasts for the Australian cattle herd and market in 2023.

The live webinar will present and discuss the forecasts for:

• herd size
• slaughter
• carcase weights
• production
• global supply competitors
• key macro issues for the cattle industry in 2023
• industry price forecasts.

To register for the webinar, click here.