Market Comments

Weekly Sheep & Lamb Comments - Week ending Friday 28th June

Written by Michael McManus | Jun 27, 2024 10:18:26 AM

AuctionsPlus commercial sheep and lamb listings increased by 2.9% this week, totaling 35,191 head. Clearance rates were at similar levels to last week, with clearance at auction falling 2 percentage points to 50%, which increased significantly with post-sale negotiations to close the week at 69%.

Value over reserve averaged $11/head over set reserves, although lots that sold during the auction averaged $17/head above, showing the value of the auction system. Further to this, the sold at auction premium was 38% above post-auction sales, with lots that sold post-auction averaging 4% under their reserve prices, whereas lots that sold at auction averaged 12% over their reserve.

Lamb prices have continued their strong run, with the crossbred lamb indicator increasing by $6 to average $132/head, and the AuctionsPlus Restocker Lamb Indicator increased by 38c to average 662c/kg dressed weight.

Joined ewes made up most of the offering with 19,168 head, or 54% of the total, as numbers rose 29% from last week. Lamb articles made up the second largest pool at 13,190 head, or 37% of the offering, which is 17% lower than last week. Joined ewes benefited from the highest percent over reserve, averaging 10% above set reserve rates, whereas lambs were 5.77% above reserves.

Listing numbers were dominated by the central west of NSW, with 6,846 head offered, of which 65% of the pool found a purchaser, with buyers willing to go above reserve on average by 11.59%. Southern Queensland was the second highest region, with 3,848 head, which was met with strong demand at an 84% clearance and 16% above reserves. The Southern Queensland offering was heavily looked at by interstate buyers, with 57% of the sold offering crossing the border. S.W. Victoria also registered plenty of interstate purchasing, with 59% of the 2,538 sold head crossing into SA and NSW.

Central Western NSW was also the largest purchasing region, securing 8,550 head or 35% of the total sold offering, with S.W. Victoria coming in second at 3,041 head purchased.

Processer/feedlot activity dropped back this week to 5.17%, with buyers interested in shedding breed lambs, Merino wether lambs and crossbred lambs.

Two lots, or 535 head of new season lambs were offered this week, with both lots finding a buyer and averaging $6 above their reserve.

Table 1: AuctionsPlus National Weekly Sheep and Lamb Prices
Report: Interactive Market Dashboard

Crossbred Lambs registered a smaller offering of 4,647 head, as prices increased on last week to average $132/head - up $6 for a 72% clearance. Crossbred lambs for the month of June are averaging $130/head, which is the highest monthly average for the category since August 2022. From Cargo, NSW, a line of 248 Poll Dorset/Border Leicester/Merino mixed sex lambs which were Aug/Sep '23 drop and weighed 42kg lwt returned $166/head, or 397c/kg LW.

Merino wether lambs registered a 37% fall in numbers this week, with the 2,993 head resulting in a subdued 43% clearance rate. Although, as a result of the smaller offering and selective purchasing the average price increased by $8 to average $73/head. From Quilpie, QLD, a line of 690 Sep/Oct '23 Merino wether lambs weighing 34kg lwt returned $70/head, or 208c/kg and will travel to a buyer in Mossgiel, NSW.

SIL Merino ewes registered a larger offering of 6,824 head, which is 21% higher than last week. The category met the demand well, with a 78% clearance rate and prices rising by $12 to average $115/head. From Hay, NSW, a line of 150 Merino SIL ewes aged 1.5 to 2 years old and weighing 67kg returned $155/head.

SIL first cross ewe numbers were flat on last week, with the 3,204 head returning a 72% clearance and falling in price by $3, to average $161/head. From Geurie, NSW, a line of 140 Border Leicester/Merino ewes aged 15 to 16 months and weighing 56kg returned $206/head.

Note: Prices as at 5pm Thursday, June 27th, 2024.