Central West buyers driving demand as sheep market stabilises

Demand from the Central West of NSW had been particularly strong for lambs this week, with significant volumes being picked up by buyers in Canowindra, Forbes and surrounding districts.

"The southern central west seems to be in the last week taking a big position on lambs," AuctionsPlus General Manager Network, Paul Holm, said.

“One buyer alone picked up 17 lots, which gives you an idea of the appetite coming out of that region.

"Volume buyers come and go but that particular individual seems to have had a pretty good crack.

“It’s created a clear hotspot on the heat maps."

When APlus News contacted the volume buyer they declined to be quoted, but indicated that the limited season in the region and grain prices meant they were looking to fill a supplementary feeding program. 

In good news for vendors, this particular buyer also indicated they would be active again in next week's sale.

Feedlots in South Australia and Orange, NSW, were also active this week.

Mr Holm said these volume buyers from considerable distance away from the supply was offering additional sales avenues for vendors and getting great results.

This week’s AuctionsPlus sheep and lamb market had a flush of spring lambs entering the platform, with total offerings lifting to 65,457 head, up 24% on last week. Lamb numbers alone accounted for more than 51,000 head, reflecting the early spring flush of new season lambs.

The AuctionsPlus Restocker Lamb Indicator (ARLI) remained a bright spot, averaging $167/head or 1,319c/kg DW, up $3 for the week. Encouragingly, ARLI is now $12/head stronger over the month and $57 higher year-on-year, signalling restocker confidence remains firm despite larger volumes coming forward. A total of 40,414 restocker lambs were assessed as eligible for the indicator during the week.

Lambs from the Riverina are being listed in volume as producers make the call to offload store lambs earlier, rather than carry them through as they usually would due to a tightening season.

"I think they know their season is going to be short and they are not going to be able to get them up to the slaughter weight they normally would," Mr Holm said.

While the broader market remains strong, momentum behind auction premiums has eased through August. Fewer lots are selling above reserve, with more transactions finalised post-auction.

AuctionsPlus clearance rates climbed 22% post-auction this week – as the market is settling into a more balanced rhythm between vendor expectations and buyer demand.

This shift has edged the AuctionsPlus Value Over Reserve (VOR) indicator lower.

Mr Holm said the store lamb market was stabilising.

“I wouldn’t say the market has softened. It’s more that reserves are levelling out and buyers are meeting them. It feels like we’ve reached a point of balance where producers are attracting a great price for store lambs and there is a solid trade for the buyer."