AuctionsPlus commercial sheep and lamb listings for the third quarter of 2022 (July-September) totalled 650,791 head – an 18% reduction from the second quarter and 40% below the corresponding quarter in 2021. Following a wet and cold winter, reduced throughput for the quarter came as no surprise, with lambs struggling to gain weight through the dull conditions, seeing new season lamb numbers run 4-6 weeks behind the traditional September ‘spring flush’.
In ranking the buying and selling regions by the total number of sheep and lambs transacted through AuctionsPlus on a quarterly basis, the top three throughput regions for September quarter in 2022 were the NSW Central West (130,981 head), NSW Riverina (108,759 head) and Western NSW 60,779 head). While nine of the top ten regions recorded a decline in throughput from the corresponding quarter in 2021, several regions registered significant rises in listings compared to the previous quarter- in particular the NSW Riverina and Western NSW which rose by 90% and 101%, respectively. Clearance rates overalled kicked 2% higher than the previous quarter, to average 68%.
Taking a closer look into Central West NSW, the region accounted for 20.1% of total sheep and lamb throughput on AuctionsPlus for the quarter, while also taking out the top purchasing region. Lamb listings for the region accounted for 88% of total throughput, with the largest listing categories comprising of NSM ewe lambs (18,977 head) and mixed sex suckers (11,876 head). Total clearance rates for the region reached 69% - 3% higher than the previous quarter.
The NSW Riverina surpassed Southwest Victoria from the previous quarter to claim the second highest listing region, with a total of 108,759 head listed. While throughput compared to the same period in 2021 was back by 57%, compared to the previous quarter in 2022 the Riverina recorded a 90% lift in total listings. Bolstering listing numbers for the quarter was a large volume of wether lambs from the region - accounting for 48% of total throughput, with 52,578 head. The total volume of lamb offerings for the region reached 75,718 head, accounting for 69.6% of total listings for the quarter.
Lamb listing and purchasing summary
Across the third quarter of 2022, lamb listings accounted for 59% of total sheep and lamb throughput on AuctionsPlus - rising 4% from the previous quarter, with new season lambs accounted for the majority of the offering.
While recent weeks have begun to see lamb numbers increase significantly online, there are still many new season lambs yet to hit the market. Following a wet and cold winter, recent rainfall and widespread inclement weather has undoubtedly disturbed the rhythm of the lamb market. As lambs take to the market later than usual, the top lamb throughput regions as seen in Table 2 for the quarter have all had large areas less impacted by wet conditions (at least until October). The impact of rainfall on the delay of lambs on the market is further depicted through the recent BOM rainfall deciles map (Figure 1). Regions which received average rainfall over the period from July to September, have been able to market lambs earlier than those which have had above or very much above average rainfalls recorded over the same period.
Figure 1: July to September Australian rainfall deciles. Source: BOM.
Sheep and lamb purchasing trends
Looking to purchasing trends for the quarter, post-sale negotiations have played an increasingly vital role in securing a transaction following the immediate close of an auction. As seen in Figure 2, a total of 67% of sheep and lamb listings were sold during the allotted auction time, while 27% of total sales were made following the auction. Other features including the “Buy now” and “meet reserve” accounted for 2% and 4% of total sales for the quarter, respectively.
Figure 2: State proportions of AuctionsPlus sheep and lamb listings and purchases for Q3 2022.
Top purchasing regions for the quarter largely aligned with the top listing regions, with the NSW Central West, NSW Riverina and Southwest Victoria taking out the top three spots. While most regions registered reduced purchases compared to the previous quarter, a rise in purchases from several regions was observed. Southwest Victoria rose by 30%, while Northwest Victoria and the NSW Southwest Slopes and Plains both rose by 42%.
As highlighted in Figure 3, Clearance rates across the quarter rose by 2% from the previous quarter. However, these rates were sitting 15% lower than the corresponding period in 2021, as selective buying was common. With a later influx of new season lambs hitting the market, it is expected that clearance rates for the final quarter of the year will be the highest. Lamb listings helped to boost clearance rates for the quarter, returning an average clearance of 73%.
Figure 3: AuctionsPlus quarterly clearance rates 2017-Q3 2022.
NSW regions accounted for 69% of listings for the quarter, while South Australia accounted for 17%, followed by Victoria with 7% of total sheep and lamb throughput. Despite Victorian listings reducing for the quarter, their purchases accounted for 29% of the total sold online - with a majority of interstate bound NSW sheep selling to Victorian buyers.
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