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Mutton prices rebound
28 February 2019
Despite elevated slaughter levels, the eastern states mutton indicator increased 16% over the past fortnight, reaching 420¢/kg cwt on Monday 25 February. Here’s the latest on market supply and prices.
Supply
Conditions across the majority of Australian sheep producing regions have been challenging in recent months. January and February rainfall has been a major disappointment for producers in the eastern states, particularly in NSW.
Faced with dwindling feedstock and a poor Bureau of Meteorology weather outlook, immediate decisions will need to be made regarding the ewe flock, particularly for operations targeting an autumn joining period.
Evidently, the decision to downsize has already been made by many across the eastern states, with year-to-date mutton slaughter up 21% on 2018, at 1.1 million head. Lamb supply remains consistent with 2018 numbers, down 1% to 2.8 million head.
Prices
Across the eastern states, Monday’s sheep and lamb saleyard indicators were largely flat on the previous week. The eastern states trade lamb indicator was down 1% to 662¢/kg carcase weight (cwt), which is 7% higher than year-ago levels.
Mutton outperformed other indicators during the week, rising 3% to 420¢/kg cwt. In a promising sign considering elevated slaughter levels, the indicator sits 7% higher year-on-year.
