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New season lamb supply on the up
21 November 2019
Key points:
- Victorian lamb yardings have reached a 2019 high.
- NSW sheep yardings remain strong.
- The eastern states trade lamb indicator (ESTLI) moved to its lowest level since April 2019.
Lamb supply
Young lambs were supplied in good numbers last week, in both NSW and Victoria.
Southern markets underpinned the supply increase, as yardings of new season lambs entering Victorian saleyards reached their highest level this spring at 61,000 head.
New season lambs continue to be yarded in good numbers in NSW; however, they have shown an easing trend in the last few weeks. The volume of new season lamb yarded in Victoria usually lifts at this time of year as the spring flush gains momentum, which could result in further downside for lamb prices in the short term.
Sheep supply
Eastern states sheep yardings have gained momentum in recent weeks, with throughput for the week ending 15 November totalling 132,630 head, an increase of 6% from year-ago levels. NSW and Victoria continue to drive the increase in numbers, accounting for 64% and 30% respectively of the eastern states sheep yarded last week. The saleyards with the largest sheep yardings were:
- Wagga Wagga, NSW – 22,500 head
- Ballarat, Victoria – 13,979 head
- Dubbo, NSW – 13,250 head
- Hamilton, Victoria – 11,643 head
- Yass, NSW – 11,300 head.
Sheep slaughter in the eastern states also saw an increase last week, totalling 166,400 head, to be in line with year-ago levels. The uptick in slaughter comes as producers continue to contend with deteriorating conditions, with further destocking of flocks evident. The increase in sheep slaughter seen since July has also been supported by the strength of mutton prices, with the eastern states mutton indicator remaining at historically high levels.
Saleyard prices
The eastern states mutton indicator has been operating at elevated levels for much of 2019. On Tuesday 19 November, the indicator averaged 587¢/kg carcase weight (cwt), 4¢ higher than the previous week and an increase of 41% year-on-year.
The ESTLI fell to a seven-month low on Tuesday 19 November, recorded at 735¢/kg cwt, a reduction of 22¢ week-on-week but 7% stronger than year-ago levels.
© Meat & Livestock Australia Limited, 2019
