Deals continue to be done post-auction through Autumn

The mixed sheep and lamb market in recent weeks, along with widespread rainfall across NSW and Queensland, has reinforced the significance of post-sale negotiations in 2022, with the immediate clearance rate achieved at the end of the sale just the start of the action. As previously reported in “The real insight into sheep and lamb clearance rates” the multiple transaction points utilised when listing on AuctionsPlus tells a much deeper story about the market than just the final selling price.

Taking a closer look into clearance rates since the start of March, weekly lamb and sheep sale negotiations occurring in the 48-hours post auction have lifted sale clearance rates by an average of 21%, up from 18% in the first two months of 2022. In the weeks that the lamb sale receives strong post sale negotiations, the sheep sale will be slightly back and visa-versa. For example, sales commencing in March 22 saw post-sale negotiations lifting the lamb clearance rate by 36%, while the sheep sale clearance only rose 21%. The fluctuations and strength of post-sale negotiations in the current sheep and lamb market continues to highlight buyers’ willingness to still secure stock given the improved seasonal conditions.

Looking to specific stock category clearance rates, the picture on current market trends and buyer sentiment is amplified. Merino wether lambs since the start of March have seen clearance rates lift an average of 27% post auction, while SIL ewes have seen a more consistent 21% lift on auction end clearance rates.

The most recent sheep and lamb sale held on Tuesday 10^th May highlighted the impact seasonal conditions can have on post sale negotiations, albeit with a reduced offering. At the close of auction, the lamb sale finished with a comparatively high 67% clearance, while the sheep sale sat at 42%. In the 48-hours following the conclusion of the sale, and with large parts of southern Queensland and Northern NSW receiving substantial rainfall, buyer interest kicked considerably, with the sheep sale clearance rising another 23%, to sit at 65%, while lambs rose 16%, to sit at near autumn high of 83%.