Industry News

Lamb supply across the eastern states at MLA’s NLRS reported markets for the March quarter 2010 finished 1% above the five year quarterly average. Lamb numbers fluctuated during the first three months, mainly due to the widespread rainfall, subsequent flooding and public holidays disrupting some trading. Lambs were scarce throughout January and February, but a late flush of well finished trade and heavy lambs during March boosted total yardings, as around 840,000 head of lambs were penned in March. The even level of supply can also be attributed to a reported increase of producers choosing to market their lambs via the physical markets, where prices have often exceeded the direct rates offered by processors. Despite lamb yardings lifting on the five year average yardings, supply actually fell 7% year- on-year. Lamb have dipped partially as producers look to finish store grade lambs themselves, which can be attributed to the good seasonal conditions between late 2009 and early 2010. Additionally, the current strength of the restocking sheep market has led to producers retaining first cross ewe lambs for future prime lamb production.

Source: MLA NLRS

Glen Innes, NSW The first of three major weaner sales held last Friday was a success, bringing 2,700 head of cattle forward. The very good quality offering of weaner steers and heifers had a higher average weight this year, reflecting the good season experienced on the Northern Tablelands. Angus steers and heifers made up a large percentage of the yarding, along with a good penning of Herford cattle and several pens of Black Baldy, Charolais, British bred and crossbred cattle. A large percentage of the heavier end of the steers and heifers were acquired by feedlots and backgrounders. Cattle were drawn mainly from the Northern Tablelands, with buyers attending from southern Queensland, including Warwick and Dalby, and northern NSW – from Gunnedah, Coonamble, Casino, Grafton, Tenterfield, Walcha as well as local areas. Most of the light weaner steers ranged from 217¢ up to 250¢/kg lwt. Medium weights averaged between 205¢ and 218¢ for all breeds and heavy Angus weaner steers averaged 191¢/kg. Weaner heifers made between 187¢ and 194¢/kg lwt.

Source: MLA NLRS

The Eastern Young Cattle Indicator (EYCI) finished Thursday’s markets at 350¢, a rise of 5.5¢ week on week, and a 33¢/kg cwt increase on the same time last year. The driving force behind the continual rise has been the extensive rain across eastern Australia. The wet conditions have restricted the transport of cattle and tightened supplies at physical markets, particularly in Queensland. Furthermore, the improved seasonal conditions have given producers the confidence to hang onto young cattle for longer and sell them in better condition. It has also encouraged strong restocker demand after several years of dry conditions. There was an increase in the number of young cattle in the north of NSW this week, after rain affected sales in previous weeks and strong prices. On the back of recent high prices and wet conditions last week, the yarding at Casino more than doubled, with around 2,500 young cattle yarded, although most rates were 14¢ to 15¢/kg cheaper, but still above late last year and this time last year. The wet conditions significantly lowered Queensland yardings, resulting in a reduced contribution to the EYCI calculation this week. Given a chance to dry out, it is expected that some large yardings will be recorded in Queensland markets.

Source: MLA NLRS

The national mutton indicator continued its dearer run this week, gaining a further 9¢ on last week, to reach 355¢/kg cwt by the close of MLA’s NLRS reported markets on Thursday. This is the highest weekly mutton indicator price on record and an astounding 158¢ above the same week last year. Traditionally, mutton prices are at their peak during mid winter, highlighted by reaching 319¢ in July 2009. With record highs already realised since late February, sheep values are anticipated to remain strong into the winter months. With the recent rain providing a rare autumn break for producers in the eastern states, supply can be expected to remain tight. The public holiday on Monday limited mutton supply in SA and Victorian markets, sending the Victoria mutton indicator to 388¢, while the SA indicator finished at 374¢/kg cwt. The disruption caused by the public holiday and widespread rain was significant as supply fell 14% in Victoria, but failed to reduce SA yardings. WA sheep supply increased, and strong live export competition along selected lines of ewes, wethers and rams helped push the WA indicator to 317¢/kg cwt. Mutton supply declined yet again in NSW after the widespread follow up rain last week, which contributed to NSW mutton values reaching 350¢/kg cwt.

Source: NLRS MLA

Cattle, sheep and lamb markets remained strong this week, with cattle yardings at MLA’s NLRS reported sales down 8% on last year, sheep 42% and lambs 15%. The Queensland floods continue to hamper transport, with some sales cancelled again this week, and a public holiday affecting Victorian and SA numbers. With restockers now active, it is the young cattle categories and cows that have benefited the most, with the EYCI reaching 350¢/kg cwt this week, up a further 5.5¢ for the week and 12% on last year. Similarly, feeder cattle rose 5¢, to 186¢/kg lwt, up 12% on last year. Japan ox lifted 10¢ this week, to be 8% above last year. Cattle prices are probably now pushing against their peak, capped by weak underlying demand for beef in Japan and the US, strong competition in Korea and an A$ over 91US¢. Once cattle movement returns to normal, cattle prices are likely to ease back – towards a seasonal low in May. Mutton sheep prices again set a record this week, at 355¢/kg cwt, up 80% on last year. Lamb price trends were mixed, having fallen from their February peaks of over 500¢/kg cwt to around 475-490¢ for well finished lines. Prices are likely to fall further this autumn, once numbers improve.

Source: NLRS MLA

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