Key points:
- Cattle yardings improved this week with strong feeder and restocker demand.
- Mixed quality sheep yardings have caused mutton and lamb prices to soften.
- Cattle and lamb slaughter held firm this week.
- The LEPI has resumed reporting this week.
Indicators
Cattle yardings increased 52% week-on-week with Roma strengthening by nearly 3,000 head. The significant increase in yardings this week is due to a lack of numbers last week with wet weather. Demand for feeders has increased at Roma with an 8% increase week-on-week for feeder sales.
Generally speaking, demand for cattle has improved in the last few weeks as producers and feedlotters prepare for the summer. Producers are looking to reduce the risk of excess space in the paddock as feed on ground improves, while feedlotters look to reduce densities in preparation for the warmer months. A favorable spring outlook for much of the southeast of Australia could see this demand continue for weeks to come.
EYCI
The Eastern Young Cattle Indicator (EYCI) came back stronger off Roma, which traded at 1,110.96c/kg cwt.
Strong Queensland restocker and feeder demand continues to support the performance of the cattle market.
Sheep and lambs
Sheep and lamb yardings have eased 33% nationally this week as producers hold on to their stock in the hope of higher prices. Some producers are trying to sell off older lambs before they cut their teeth, but this is proving difficult with the varying quality and over-supply available to processors.
Lamb yardings have softened 23% week-on-week with the majority of sales coming from the Wagga Wagga and Forbes sales. Although this may be the case, yardings at Wagga Wagga eased 14,500 head overall as the prices softened over the week.
As expected, heavier lambs were in high supply and demand at these southern saleyards due to a strong export market. Forbes and Wagga Wagga were trading 63¢ and 45¢ above the national average for heavy lambs.
Slaughter
Cattle and lamb slaughter volumes have held firm this week. Cattle slaughter increased by 1,922 head or 2%, while lamb slaughter was 221 head softer week-on-week but still 12% above year-ago levels, thanks to the reliable supply of lambs coming through the market.
Sheep slaughter eased by 6.6% this week to sit below year-ago levels. Limited capacity in the processing sector could be causing a prioritization of lamb slaughter, although older sheep are relatively inexpensive in the market at the moment.
LEPI
The Live Export Price Indicator (LEPI) has resumed reporting this week.
The indicator traded at 397¢/kg lwt with 4,800 head feeder males shipping to Indonesia in positive news for the live export industry. To view the LEPI dashboard, click here.
Sales not held
There was no Bairnsdale sale held this week.
More on the market
New ABS livestock and production figures were released last week. See the key highlights here.
MLA and ALPA's Lot feeding brief was also released this week and can be found here.
