Sheep market loses confidence

Easing restocker demand and the absence of notable trade and export buyers at some sales are taking a toll on prices as winter sets in.

All national indicators have eased week on week and remain well down from year ago levels.

As of Tuesday, restocker lamb had taken the biggest dive over the week, slipping 76c to 391c, while light lamb had the best weekly performance only losing 23c to rest at 432c.

The mutton indicator lost 34c to sit at 364c.

The best yearly performance was in the heavy lamb indicator at 614c, down 186c from a year ago, after slipping 31c in a week.

All other indicators were down by between 260c and 381c when compared to year-ago pricing.

Reduced throughput could also be attributed to producers holding on to stock for joining.

While sheep slaughter eased over the week, lamb slaughter picked up.

Combined sheep and lamb slaughter is still 25pc above 2022 levels and 42pc above 2021 numbers.

According to Mecardo market analyst Olivia Agar, sheep throughput at saleyards and pricing both remain very volatile.

"Last week east coast sheep yardings lifted 67pc week on week," she said.

"The yarding of almost 72,000 head was 21pc stronger than the five-year average levels. 176,248 lambs were yarded in the east, which was just 1pc lower than the five-year average."

At Wagga Wagga, which contributed 37pc of throughput in the indicator, mixed quality saw a 22c easing for heavy lambs.

Wagga Regional Livestock agent Adam Boyd said it was getting tougher and tougher every week.

"There's very little confidence, you're fighting a few different factors," he said.

"It's dry everywhere else apart from where we are here in the Riverina and there's just still plenty of lambs around.

"I see between and the end of July being much the same as the trends now, being quite tough until we get a bit of reprieve in numbers when those old lambs are through the system."

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Mr Boyd said the absence of key buyers was causing a strain on the market.

"Fletchers is probably the biggest notable one and Coles, they're probably two of the biggest buyers especially in Wagga for the lamb and they haven't been buying out here for probably a good month now," he said.

"If you're trying to book anything into abattoirs, some places only book week to week but anyone who takes them out further than that are out until the third or fourth week of July as it is.

"With the fluctuation of the live market in the last 12 months, you get a lot of people wanting to just hook lambs direct now, we've seen a big increase in that in the last six to 12 months.

"You're not necessarily seeing the bigger number in the yards, but certainly trying to book any lambs in , they've got that backlog of a month to six weeks."

Mr Boyd said mutton remains a shining light.

"You're trading your old ewe in for nearly as much as you're selling your lambs for at the moment, it's not making a lot of sense really," he said.

"The global markets are obviously able to move the contracts for the mutton, and the lamb it seems it's come to a standstill."