September national lamb market:
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- Weekly supply average down 23pc to 127,883
- ESTLI av 607c/kg, up 65c/kg
- OTH up 40c to 616c/kg
- Lamb slaughter down 11pc
- Average lamb weight 20-24kg, up from 12-18kg
![Widespread rain contributed to a dramatic reduction in yardings last month, with national supply back 40,000 head per week. Widespread rain contributed to a dramatic reduction in yardings last month, with national supply back 40,000 head per week.](/images/transform/v1/crop/frm/9kyzP9Zutm5XFVsqvLWUBX/d63f99da-9c3a-43ac-8ff3-64d4b462ecf6.JPG/r1250_227_3008_1998_w1200_h678_fmax.jpg)
THE seasonal back-flip from last year’s drought conditions to a record wet spring has impacted lamb supply which is down 23 per cent on last September.
Logistics transporting livestock to market due to the ongoing rain has contributed to the drop in average weekly supply which was down nearly 40,000 head per week throughout September, compared to the same period last year.
September 2015 recorded a national weekly lamb supply average of 166,179 head, while last month recorded just 127,883 av per week, according to Meat & Livestock Australia (MLA).
MLA market analyst Stephanie Williams said the weather conditions had been the major driving force behind the supply volatility with last year’s dry conditions influencing an increased offload of stock, while last month was challenged by widespread flooding conditions which reduced yardings.
Some of the most dramatic supply falls were recorded at Forbes, NSW and Ballarat, Victoria, markets, where lamb supply was back 35pc and 33pc respectively last month compared to the same period last year.
We’ve predicted the national flock to be around 70 million and it is meant to recover to 73m by 2020, but I think if the prices are to remain how they’re, that’s such a good incentive to continue to offload and finish them well because we have the season behind us now to help finish the stock.
- Stephanie Williams, MLA
The contraction in lamb yardings has supported prices, with the average Eastern States Trade Lamb Indicator (ESTLI) increasing on September 2015 figures by 65 cents per kilogram to 607c/kg, while over-the-hook prices rose 40c/kg to 616c/kg av last month.
Lamb slaughter dropped 11pc last month to 613,380, and averaged 153,345 head per week nationally.
Ms Williams said solid forward contracts had lured consistent supply out of the system which has resulted in sustained slaughter, despite the reduced supply.
“(Processors) have offered good forward contract prices months in advance and there has been good uptake,” she said.
“We’ve predicted the national flock to be around 70 million and it is meant to recover to 73m by 2020, but I think if the prices are to remain how they’re that’s such a good incentive to continue to offload and finish them well because we have the season behind us now to help finish the stock.”
While majority of lambs produced in September 2015 fell into the 12 to 18 kg bracket, last month average weights of lambs produced were between 20-24kg.
“The dry conditions of last year saw people offload numbers quickly, with the spring flush earlier in the season,” she said.
“There were more young lambs in September than what we are currently have because we haven’t seen that big rush yet.
“It has been a quiet September but there will be more to come at the end of this month.”