Merino Lamb Indicator surges to daily record

12 Jun 2026

Key points

Rising wool prices have created retention decisions for many wool producers, causing a compounding effect on the price of all sheep indicators.
The Merino Lamb Indicator broke its daily record this week at 1,140¢/kg carcase weight (cwt).

On Tuesday 9 June, the Merino Lamb Indicator reached a daily record of 1,140¢/kg (cwt). On 10 June, the average price on a $/head basis was $260 across an offering of 8,255 head.

Rain and wool prices influence sheep indicators

The lift in the Merino Lamb Indicator follows sheep market trends seen over the last month. Unexpected rain throughout large parts of the country has caused producer sentiment to rise against the medium-term forecast of a dry winter.

Some of the other standout indicator lifts this month have come from the Mutton Indicator, which lifted 9% over the month to 864¢/kg cwt, breaking its recent record. The Trade Lamb Indicator also lifted 8% to reach 1,220¢/kg cwt.

The sharp lift in the Merino Lamb Indicator has more nuance than weather alone, including influence from a sharp lift in wool prices since September last year. Low overall lamb supply remains the largest contributor to Merino lamb prices at the saleyard.

Graph of Merino lamb indicator to weekly yarding june 12th 26
Source: MLA, NLRS

Merino lamb vs heavy lamb

When comparing the Merino Lamb and Heavy Lamb indicators since 2019, the indicator values had separated with a clear premium for Heavy Lambs evident since August 2021, which is now being closed in on by the Merino Lamb Indicator against the tightening supply of Merino lambs in 2026.

Graph Monthly National heavy lamb v Merino lamb indicator

Graph june 12th 2026 Heavy lamb indicator to weekly yardings
Source: MLA, NLRS

When looking at the average yarding year-to-date (YTD) (first to 24th week of each year) since 2019, the heavy lamb yarding in 2026 is 9% above average, with a YTD yarding of 1,152,851 head against an average of 1,060,023 head since 2019. The Merino lamb yarding is 27% below the average for this time of year, with a total offering of 342,842 head in 2026 against an average of 470,151 head since 2019.

While the wool price has returned some premium value to Merino lambs, the pricing is still largely tracking processor-focused lines as processors continue competing for a tightening supply. The retraction in supply of Merino lambs so far this year is due to retention decisions made by wool producers and has had an impact on lifting all sheep indicators.

Results from Meat & Livestock Australia’s current Sheep Producer Intentions survey will provide a key source of information for understanding the different retention decisions of producers across different breeds.

Want to contribute? Take the May Sheep Producers Intention survey.

Attribute content to Alex Fry, MLA Market Information Analyst.     

Information is correct at time of publication on 12 June 2026.

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