Sheep market loses confidence as Australian prices decline

Easing restocker demand and the absence of notable trade and export buyers at some sales have taken 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 lambs had taken the biggest dive over the last week, slipping 76 cents a kilogram to 391c/kg, while light lamb had the best weekly performance only losing 23c/kg to rest at 432c/kg.

READ MORE:

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

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

All other indicators were down by 260-381c/kg when compared to a year ago.

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 25 per cent 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, while 176,248 lambs were yarded in the east, which was just 1pc lower than the five-year average."

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

Wagga Regional Livestock agent Adam Boyd said it was getting tougher each 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 now 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."

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 is out until the third or fourth week of July as it is."