Key points:
- The restocker market grew 9¢ as heifer prices hit 299¢.
- The Heavy Lamb Indicator is at its strongest since October 2021 at 909¢/kg cwt.
- Processor interest in mutton continues, with 34% of combined sheep and lamb slaughter being mutton.
Cattle market
The cattle market was strong over the past week, lifting between 9–24¢ across all indicators.
Remaining firm, the cattle market continued following the trends of the past month. The heifer market was up 9¢ week-on-week, and 31¢ on the previous month, coming in at 299¢/kg liveweight (lwt) – the firmest price since February. Steers followed this trend, also up 9¢ on the week prior and 37¢ on the previous month to 382¢/kg lwt, resulting in a maintained 28% gap between restockers.
The market lifted feeder steer prices by 9¢ to 357¢/kg lwt, though reduced yardings indicated demand for feeder animals has softened.
Sheep market
After high throughput in the previous weeks, national sheep and lamb yardings eased 9% this week to 356,984. The ease was driven by good rainfall across some of the major supply regions. Lamb yardings eased 3% to 244,220, and despite the impressive throughput in the week prior, yardings for sheep pulled back 19% to 112,746.
The sheep market saw all indicators (bar the Light Lamb Indicator) achieving week-on-week, month-on-month and year-on-year improvements. The Light Lamb Indicator eased by 2¢ to 728¢/kg carcase weight (cwt). Improved buyer competition was noted across market reports, indicating processor eagerness will remain strong until the end of the year.
There was an unseasonal lift to the Heavy Lamb Indicator (up 38¢ to 909¢/kg cwt) and a 41¢ lift in the Trade Lamb Indicator to 858¢/kg. This showcased a continued strength in the markets despite elevated yardings through both specifications. The Heavy Lamb Indicator is the strongest it's been since October 2021.
Despite lifts for both indicators, the gap remains, now growing to 51¢. This is only the fifth time since 2001 the gap between these two indicators has been greater than 50¢.
Slaughter
Week ending 29 December 2024
Slaughter remained stable last week as processors enter the tail end of the year.
National cattle slaughter eased 1,731 (1%) to 143,428. The supply of processor-ready animals remains firm, 9% above the annual weekly average for 2024 and tracking 14% above the year-to-date throughput of 2023. Each state remains above where they were same time last year, while individual week-on-week figures were varied. NSW and Queensland throughput decreased week-on-week by 4% to 34,170 head and 1% to 75,417 head, respectively. SA cattle numbers remained flat at 3,575 and Tasmania lifted 1% to 4,886 head. Victoria lifted 2% to 22,733 to achieve the state's third-largest throughput week in three years. The largest growth was seen in WA with an increase of 6% to 2,647 head.
The combined sheep and lamb slaughter eased 3% to 708,746 head. Despite the ease, it remained well above-average as the third largest processing week on record. Reductions in all states, bar Queensland, brought levels back, with all states processing between 10–25% more when compared to year-to-date 2023. A 3% reduction was seen in lamb slaughter, with a reduction in all states, including Queensland and WA, where numbers reflected the throughput of June this year. Similarly, sheep slaughter dropped 4% to 241,310, though was still the third largest throughput since 2006.
In NSW, 49% of the combined kill was sheep over lamb, with similar trends seen in WA at 46%. National proportions sat at 34% as processors continued to buy mutton despite no significant pullback in prices, indicating strong supply joined by solid demand.
Attribute to: Erin Lukey, MLA Senior Market Information Analyst
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