Yardings spike fails to budge lamb prices

Lamb’s sideways price trend has continued despite a 34% week-on-week increase in national yardings for the week ending Tuesday 19 March.

National saleyard indicators remained very similar to the week before, with the biggest change being support for restocker lambs. Prices here were up 5% week-on-week.

Prices

The National Trade Lamb Indicator (18–22kg cwt) increased 5¢ week-on-week to 646¢/kg cwt. Nationally, trade weight lambs are trading at a 14¢ premium to the heavy weight category (22–30kg cwt) through saleyards, while there is less competition for restocker lambs (0-18kg cwt), which were trading at 624¢/kg cwt on Tuesday (19 March). However, restocker lambs were trading stronger this week, with the lighter category up 27¢/kg cwt week-on-week.

The major price changes this week have been in over-the-hook (OTH) grids, as prices ease to be more in line with the saleyard indicators. The national trade lamb OTH indicator decreased 14¢ to 643¢, just below the saleyard price for similar lambs, while OTH prices for light lambs (16–18kg cwt) were also traded at a slight discount to saleyard restocker prices, at 621¢/kg cwt this week.

Heavy lambs selling direct to processors are trading at a premium to those entering the saleyard system. This week’s national heavy lamb OTH indicator was 643¢, 11¢/kg cwt above Tuesday’s heavy lamb national saleyard indicator.

Yardings

While prices have not moved significantly, lamb yardings have increased across most states over the past week. 142,000 lambs were sold through NSW saleyards over the week to Tuesday, an increase of 36,000 head from the previous week. Most saleyards saw increases, although the larger rises were predominantly seen at:

• Wagga Wagga - up 12,000 head to 32,000
• Forbes - up 10,000 head to 33,500
• Corowa - up 6,500 head to 13,000
• Griffith - up 5,000 head to 10,500

Victorian lamb saleyard throughput increased 14,500 head to 42,000 head, with the fortnightly Bendigo sale, up 2,500 head to 8,000 head, recording the most significant change.

WA moved 16,200 lambs through saleyards in the week to Tuesday, an increase of 6,700 head on the week prior. Both recorded sales increased in size, with Katanning jumping 4,200 head to 9,200 and Muchea up 2,500 head to 7,000 head.

Sheep yardings nationally saw little movement. The major change was in Victoria, up 8,500 head, with the additional contribution coming from the Bendigo fortnightly sale.