Market Comments

Weekly Sheep & Lamb Comments - Week ending Friday 22nd July 2022

Written by AuctionsPlus | Jul 20, 2022 12:53:23 AM

Originally published Wednesday 20th July 2022, Updated 22 July 2022

AuctionsPlus commercial sheep and lamb offerings increased 14% this week, to 44,314 head. Results over previous weeks have proved the existence of a stalemate in the market, with both vendors and buyers unable to reach common ground, as clearance rates remain subdued across most categories. The traditional rhythm of the sheep and lamb market has become unbalanced in recent months, with rising costs, the ongoing wet conditions and lingering uncertainty weighing heavily on the sentiment of the market. Prices for the largest lamb categories eased, while SIL Merino ewes and SIL First cross ewes experienced increases on last week.

Crossbred lambs had the largest lamb offering for the week, with 4,394 head. Post auction negotiations contributed to a subdued 53% clearance at the immediate conclusion of Tuesday’s auction lifting to 87% by late Thursday. Prices for the week averaged $15 lower on last week, at $124/head, ranging from $96-152/head.

Merino wether lambs sold to steady interest, with the 3,771 head reaching a 59% clearance rate. Prices for the week slipped $11 lower, to average $101/head, ranging from $66-135/head. 290 Merino wether lambs, out of Balmoral, Southwest Victoria, averaging 38.7kg liveweight, sold to $118/head.

Quality lines of first cross ewe lambs saw prices rise $106 on last week, averaging $262/head, with the 1,672 head offering achieving a 62% clearance rate by late Thursday. From Trangie, NSW a line of 127 Border Leister/Merino 11-12-month-old ewe lambs weighing 63kg lwt returned top price for the category at $336/head.

Numbers were very thin through the shedding and composite breeds this week. Out of Moree in northern NSW, 700 Corriedale mixed sex lambs sold to $141/head – averaging 43.5kg for the August/October 2021 drop.

The sheep market experienced selective buying throughout the auctions, with post sale negotiations seeing clearance rates rise, particularly for the shedding breed offering. SIL Merino ewes, with 9,072 head offered averaged $8 higher on last week, at $193 head, with post sale negotiations lifting the 24% clearance rate at the immediate close of sale to 45% by late Thursday. Out of Coonabarabran, NSW Northwest Slopes and Plains, 415 SIL Merino ewes sold to $185/head – at five years of age, averaging 54.7kg/head and joined to White Suffolk rams.

There was a large supply of SM shedding breed ewes offered this week, with the 5,179 head averaging $240/head. Reaching a 94% clearance rate late Thursday the category rose from a 72% clearance at the immediate close of auctions. Out of Ivanhoe, in western NSW, 485 SM White Dorper ewe lambs sold to $265/head – averaging 43kg liveweight.

Merino wethers found steady buyer interest this week, with the 2,110 head offered reaching a 91% clearance rate. Given the very tight sale range, from $118-$125, prices averaged $122 for the week.

Following a run of reduced offerings and limited buying activity, this week’s Thursday sheep sale trumped Tuesday’s results, with the 1,734 head offered achieving a 94% clearance. Sale numbers were boosted by the dispersal offering from A/c ‘AW & ST Thompson’, from Central West NSW. According to the vendor, the national exposure and reduced competition were the main reason behind utilising Thursday’s sale.