Key points:
- Yardings are back this week due to many sales in flood-affected regions being cancelled.
- Lamb prices have strengthened, with smaller yardings placing pricing pressure on the market.
- Restocker lambs strengthened 41c; new season lambs made up 68% of sales in the indicator.
- Processor cow prices in NSW recovered, reaching 22% above the five-year average.
This week, yardings came back 33% for cattle and 10% for lambs. Getting stock to sales is becoming more difficult due to flooded roads, so producers are prioritising moving stock to high ground or preferencing direct sales from the paddock.
Lambs
Although numbers at the saleyards are reduced, lamb prices have strengthened or remained firm. The restocker lamb indicator has improved 41c week-on-week after Wagga Wagga traded 103c above the national average on Thursday. Yardings at the sale were back 20,000 head for lambs and 1,000 for sheep, placing pricing pressure on the market.
Extra heavy lambs have been in strong demand in the market, with processors and exporters competing for smaller yardings. The exchange rate has also come back, making Australian meat exports more competitive on the global market. This, along with easing shipping prices, paints a promising picture for Australian exports.
The heavy lamb indicator lifted 33c this week to 825.16c/kg cwt, its highest price since June. Dubbo took out the highest price, with some well-finished lambs presenting at the saleyard.
Bendigo saw 30,000 head at the sale this week with a 12,000 head increase in lamb yardings. Roads that had been affected by floods have now opened, allowing producers to transport lambs at good weights.
New season lamb yardings have only softened 2% week-on-week and older season lambs eased 24% in yardings.
Gracemere saw an ease in yardings by over 2,000 head with a smaller panel of buyers at the sale. Quality of the stock presented was still good.
Cattle
Throughput through the Eastern States Young Cattle Indicator (EYCI) is at its lowest since April, but prices have remained firm. Restockers are still paying 1,156c/kg cwt on average in the indicator. Larger sales such as Dalby and Roma (which usually take out the top spots for contribution) have now been overtaken by Wagga Wagga. These markets saw an ease in yardings by 71% and 73% respectively. Although these Queensland sales may not be directly impacted, they have been drawing stock from wetter areas in the south.
The Western Young Cattle Index (WYCI) has returned to prices from two weeks ago, with Mount Barker contributing to the indicator.
Processor cows in NSW have recovered from softer prices in July, although not at record prices. The average price was $2,339/head in the state, 22% above the five-year average.
Other market updates
- Sales that did not run this week: Toowoomba, Gunnedah, Swan Hill
- MLA's annual saleyard survey was released this week: Article – 2022 saleyard survey results
- Slaughter data for this week will be released next week.
