Weekly cattle and sheep market wrap

This week, light lambs are the only indicator to be in a stronger position than 12 months ago. Meanwhile, the medium steer indicator is offering a premium to its heavy steer counterpart.

Light lambs strengthen

As a result of favourable seasonal conditions and the historically strong heavy lamb market incentivising weight gains, light lambs are outperforming all other sheep indicators to be the only indicator year-on-year in a stronger position than it was 12 months ago. Despite increased yardings, the national indicator continues to strengthen in the month of February, appreciating 24c/kg carcase weight (cwt) or 3% in a week.

With an expected uptick in heavy lamb supply this autumn, as well as the seasonal conditions challenging the potential for lambs to withstand weight gains, scarce supply of the spec may provide upward support for the price of these lambs in coming months.

In Victoria, the indicator has risen 35c in seven days, to currently operate at a 12c/kg cwt premium to the national indicator. Due to softer than expected yardings for 2021, it’s expected that Victoria will deliver the bulk of the increased yardings of heavy lambs in the coming months.

Medium steer

In different circumstances to the heavy lamb indicator incentivising weight gain for producers, the medium steer indicator in the cattle market – with the inclusion of feeder buyers – is offering a premium to its heavy steer counterpart. At present, the medium steer’s premium to the heavy steer price is 46c or 10%, to currently sit at 496c/kg liveweight (lwt).

The inclusion of feeder buyers purchasing 91% of the total yarding ensures these medium weight articles (400-500kg lwt) allow feeders to purchase a heavier article without the need for backgrounding, ensuring the animal can enter the feedlot straight away and cut costs.