Lamb and mutton indicators gain traction
23 June 2016
Eastern states lamb saleyard indicators gained solid momentum this week, following widespread rain across most of the key producing regions. The trade and heavy lamb indicators averaged 627¢ and 636¢/kg cwt, respectively – levels not seen since early 2011.
The Merino lamb indicator was up 10¢ week-on-week, to 568¢, while light lambs lifted 12¢, to 599¢/kg cwt. The wet weather assisted the eastern states restocker lamb indicator to increase 33¢ week-on-week, to 627¢/kg cwt. Typically in winter, restocker purchases ease, hovering below 10,000 head per week at MLA reported markets.
Eastern states lamb yardings reduced this week after the weekend rain, down 3% week-on-week, to 140,608 head. Average weekly eastern states lamb slaughter for the year-to-date has remained in line with 2015 levels, at 355,982 head, although is 10% above the five-year average (324,604 head).
Mutton supply usually contracts at this time of year, with processor maintenance shutdowns, wintry conditions and lambing taking place. Average weekly eastern states mutton slaughter for the year-to-date is down 4% from year-ago levels and 12% lower than the five-year average (112,381 head), at 98,501 head.
The tighter supply assisted the mutton indicator this week to lift 17¢ week-on-week to 414¢, the highest it has been since August 2011 – the record lies at 481¢/kg cwt (March 2011).
