Prices do a lambstand
The Snapshot
- NSW lamb producers responded to mid-July lamb price falls, with lamb saleyard throughput easing 37% in the last fortnight.
- Meanwhile, Victorian lamb saleyard throughput is nearing the seasonal winter lows near to 20,000 head per week.
- NSW lamb slaughter volumes have lifted nearly 22% from mid-July to see around 114,000 head processed as at the end of July.
- For the last two weeks in July weekly Victorian lamb slaughter volumes gained 6% to hit 179,000 head at the end of the month.
- With abattoirs appearing to be clearing the reported backlog of lambs the National Trade Lamb Indicator has rallied 20% over the week.
The Detail
Anecdotal reports of strong producer turnoff, as fear of a Foot & Mouth Disease (FMD) incursion set in, saw processors swamped with lamb through July. This led to a sharp price collapse in the last two weeks of July. NSW lamb producers responded accordingly to the price falls, with lamb throughput easing 37% in the last fortnight (as as 5th August).
Current NSW weekly lamb throughput volumes sit at 35% under the five-year average for this week in the season at approximately 78,000 head. Meanwhile, Victorian lamb throughput is nearing the seasonal winter lows near to 20,000 head.
Abattoirs appear to be clearing the backlog of lambs. In the last week the National Trade Lamb Indicator has rallied 20% from around 615c/kg cwt to close today (9th August) at nearly 740c/kg cwt.
NSW lamb slaughter volumes have lifted nearly 22% from mid-July to see around 114,000 head processed as at the end of July. This represents lamb processing levels that are nearly 12% above the five-year average for this week in the year. Weekly Victorian lamb processing have shown gains too since the middle of July, albeit at a more moderate pace than NSW.
For the last two weeks in July weekly Victorian lamb slaughter volumes gained 6% to hit 179,000 head at the end of the month. While the magnitude of the gain in Victorian lamb processing wasn’t as robust as in NSW the current Victorian lamb processing volumes are an impressive 19% above the five-year average for this week in the season.
