Weekly sheep and cattle market wrap

Indicators

Heavy and medium steer prices have bounced back week-on-week trading at 460.34¢/kg lwt and 463.99¢/kg lwt on average respectively. Casino and Emerald, which both had quite a large contribution in the heavy steer indicator, were trading 47¢ and 19¢ below the national average. This was offset by Carcoar and Dubbo, which contributed 46% collectively and traded between 12¢ and 22¢ above the national average.

The Eastern Young Cattle Indicator (EYCI) eased on Thursday after Dalby and Dubbo traded under the national average. There was also a softening in yardings for the EYCI week-on-week, with rain events in Roma and a slight dip in processor sales contributing to the drop. Processors have been able to source these young cattle for under $10 on average this week.

Meanwhile, the Western Young Cattle Indicator (WYCI) has strengthened, with Mount Barker prices holding firm at 1133.79¢/kg cwt and contributing 92%. Yardings have eased as the seasonality of supply is realised.

Sheep

As expected, restocker lamb prices continue to ease as producers try to avoid the inevitable glut of heavy lambs that will hit the market later in the year. The second largest contributor, Hamilton, was trading 142¢ under the national average while Ballarat, the top contributor, was trading at a 53¢ premium on the national average at 820.46¢/kg cwt. Mutton prices have bounced back with Ballarat again contributing the largest amount at a 47¢ premium.

Heavy lambs in Corowa had a large premium, trading at 905¢/kg cwt or an 86¢ premium on the national average. Premium prices in Australia’s south-east continue to strengthen prices.

Yardings were stronger this week with Wagga Wagga increasing their yardings by nearly 8,000 head and Ballarat increasing by 10,508 head week-on-week. Yardings were down last week in Ballarat due to a lack of boats arriving from Tasmania to boost numbers at the sale. The increased yardings meant competition weakened, with feeder and restocker prices easing 32¢ to 34¢.

In Wagga Wagga, there was a price correction from last week. The higher prices attracted larger numbers to the sale but also allowed processors to be more selective with a greater number of lambs available. The loaded market has allowed buyers to take advantage of an easing in prices. Last week saw Victorian buyers on the rail, trying to fill numbers from the lower yardings in the state. This week, there were only a few buyers from the state and so interest was more subdued. Export buyers were also quiet as challenges around sourcing containers continue. The tail end of the lambs are now coming through the saleyards and so quality is mixed as many secondary types that are about to cut their teeth are sold off.

Slaughter

Sheep slaughter has not dipped to its usual seasonal lows, reaching 105,032 head this week. This is a 23% increase year-on-year as sheep slaughter is normally limited at this time of year due to joining and lambing. Processors are working through a backlog of supply, maintaining slaughter numbers.

Lamb slaughter exceeded 400,000 head this week – the highest rates this year. This further illustrates the oversupply of lamb that is currently moving through the processing sector.

Cattle slaughter has reached above 2021 levels at 96,772 head even though there was a slight easing in numbers week-on-week.

Sheep survey

Australian Wool Innovation (AWI) and MLA are inviting sheep producers across Australia to participate in an anonymous survey about their on-farm practices. Click here to read more or participate in the survey now.

Sales update

The Bairnsdale sale was cancelled on Thursday.