Market watch: NSW sheepmeat

NSW has experienced an extended dry period this year, with large parts of the state seeing the onset of drought, while some areas are declared drought-stricken according to NSW DPI.

Last week, MLA reported saleyards in NSW saw a total of 116,437 lambs yarded, up considerably on the previous week (due to the Queen’s Birthday public holiday), although back 13% on year-ago levels.

Saleyard indicators have lifted to above 2017 levels at the beginning of this week (25 June), after tracking lower since April. The NSW trade lamb indicator reached 670¢/kg carcase weight (cwt) on Monday, the highest it has been since 9 January.

Notably, at the Forbes sale this week, a pen of lambs sold for $260/head, the highest $/head price on record for NLRS reported markets, selling to the equivalent of 694¢/kg cwt. The NSW mutton indicator opened this week at 510¢/kg, surpassing the 500¢ mark for the first time since June last year.

For the year-to-date, lamb and sheep slaughter in NSW has been higher year-on-year, with the extremely dry conditions driving increased turn-off. Last week (ending 22 June), NSW lamb slaughter reached almost 112,000 head, up 9% on year-ago levels, bringing the year-to-date total to just over 2.65 million head, an 11% increase on the same period last year. Sheep slaughter across the state totalled just over 55,000 head last week, up 49% year-on-year, which saw the year-to-date total to 1.28 million head, up 38% on the same period last year.