Here they come

The Detail

The Victorian spring lamb flush had been running behind the usual average weekly pattern, according to the five-year trend, as reports of a cold/wet start to spring had seen lambs slow to put on weight. However, in recent weeks the situation has changed with increased numbers of lambs presenting at Victorian saleyards.

As of the first week of summer Victorian lamb yarding levels have picked up momentum to sit just 2% shy of the five-year average level for this week in the season at 134,465 head. The influx saw prices for some categories of Victorian lamb ease during the week, with Merino lambs most impacted, declining by 73 cents to 685c/kg cwt. Restocker, Light and Heavy lambs in Victoria easing mildly, between 2-13c on average across the state. Meanwhile the Victorian Trade lambs bucked the softer trend to see a small 9c gain on the week to close at 850c/kg cwt.

Weekly lamb throughput is in stark contrast in NSW, with saleyard numbers continuing to decline into December. Although, as the seasonal average trend highlights, this is not an unusual pattern to see into summer. NSW lamb yarding levels eased 6% from the previous week to see 73,462 head yarded for the first week of December. These volumes represent levels that are 4% under the five-year average pattern for this week in the year.

The tighter NSW picture supporting lamb prices with just a 1c decline noted for Merino and Heavy lambs in NSW noted over the week. NSW Merino lambs holding a 21% premium to their Victorian counterparts this week, after closing at 768c/kg cwt. Restocker, Light and Trade lambs firmer by 7-14c on average across the week, with NSW Trade Lambs pipping Victorian Trade lambs by a few cents to close at 852c/kg cwt.

Meanwhile, South Australian lamb yardings appear to have peaked and plateaued from their spring flush after posting the second consecutive week of a fraction over 30,000 head of lambs. Weekly SA lamb throughput is currently sitting 2% under the five-year average pattern for the first week of summer.

Across the east coast lamb throughput has been well supported by the arrival of the Victorian hordes with weekly yarding levels hitting 240,074 head for the week ending 3rd December. East coast weekly yarding levels are running just 3% under the seasonal average for this time in the year.

Anecdotal reports from southern producers suggests that lamb weight gains have been slow this season during spring due to the colder and wetter than normal conditions. However, the warmth is starting to appear and this suggests that once saleyards resume after the Xmas hiatus there could be some strong supply presented.