Weekly cattle and sheep market wrap
09 June 2023
Key points:
- Rain in some southern regions has helped the sheep market but has not had much effect on the cattle market.
- Yardings have tightened in cattle, sheep and lambs.
- Lamb slaughter in Victoria reached its highest level in three years.
Cattle
The cattle market continued to soften this week, despite rain tightening yardings across parts of the country. NSW and SA yardings remained firm, yet softened significantly in Victoria, Queensland and WA. The overall national volume ended the week below the weekly average for the year.
A significant tightening in dairy cow supply this week saw the indicator improve by 8¢ to end the week at 165.5¢/kg liveweight (lwt). The Dairy Cow indicator ended the week as the best performer.
As a result of high numbers of young cattle on-farm, restocker yearling heifers experienced a 14.6¢ or 6% drop this week, to finish the week at 232¢/kg lwt – this is the lowest price the indicator has been since early January 2020.
Processor cows finished the week firm, demonstrating that solid demand from processors is continuing to translate into firmer pricing performance relative to other categories.
It’s important to note that now restocker demand has eased as a result of the intense herd rebuild over the last three years, the finished and feeder cattle prices in cents per kilogram of liveweight terms are the best indicators of market performance.
Sheep
Sheep and lamb yardings have come back again this week, hitting 63,587 and 133,189 head respectively. Numbers at Wagga Wagga fell by 13,000 head, with a 12,000 head reduction in lamb numbers. Overall quality did improve but not all buyers were active or present. Heavy export stock were able to lift in price.
Some good rains across the southern regions have allowed prices across all categories to improve week-on-week. Heavy lambs lifted 5¢ week-on-week to 624.88¢/kg carcase weight (cwt), with Wagga Wagga contributing 25% to the throughput in the indicator.
The trade lamb indicator improved by 47¢ after a 117¢ jump in prices at Hamilton, which contributed 11% to the indicator. This is despite numbers through the indicator lifting by just over 11% week-on-week. Prices in the indicator increased across all weight ranges, with the heavier lambs (24–26kg) taking out a premium.
Mutton prices also improved to 387.4¢/kg cwt. Forbes, which had the greatest contribution of 5,207 head, held firm on prices as numbers fell and quality was mixed. The 24–30kg weight range is fetching the highest premium but the 14–18kg sheep improved the most week-on-week.
Slaughter
Lamb slaughter in Victoria this week reached 210,902 head – the highest in over three years. The prioritisation between mutton, lamb and goat is still evident in the NLRS slaughter figures as the small stock competes for kill floor space. The lift in goats to 44,643 head this week saw a slight softening in sheep and lamb slaughter.
Sheep and lamb slaughter in NSW and Victoria has eased this week, but goat slaughter was able to increase.
Cattle slaughter picked up 6% week-on-week and now sits 28% above year-ago numbers.
Markets update
Combined sheep and lamb exports for May reached their highest level on record.
Bairnsdale and Swan Hill did not run this week.
Sheep Producer Intentions Survey
The latest Sheep Producer Intentions Survey has been released today with national sentiment remaining positive but WA sentiment and intentions falling when compared to the outlook from the October survey.
Breeding ewes are expected to decrease by 6% over the next 12 months, with weather as the major on-farm and off-farm driver.
