The AuctionsPlus commercial sheep and lamb markets experienced a substantial decline this week as the industry shut down for the Christmas period. Despite the Christmas break affecting the total number of offerings, which was much lower than the previous week, the market responded strongly to the reduced listings, with 35,873 head meeting strong Christmas demand.
The remaining market indicators were unaffected by the disjointed week, reflecting two consecutive weeks of positive indicator results. This positive trend is driven by the recent uptick in confidence and the lower supply on offer this week. Clearance rose by 1 percentage point to 85%, the Value Over Reserve averaged $16 above set reserve levels, and the AuctionsPlus Restocker Lamb indicator increased by 12% to 523c/kg DW.
Listings were predominantly from New South Wales, which accounted for 19,469 head or 54% of the total offering, followed by South Australia at 8,479 head or 24% of the total.
Purchasing was dominated by NSW and Victoria, acquiring 10,828 and 9,327 head, respectively. Notably, 88% of NSW purchases were secured within the state. In contrast, Victoria actively sought listings from interstate, acquiring 60% of their total from NSW and 23% from SA, with the remaining 17% sourced locally. Victorian purchasers focused primarily on securing Merino wether lambs and Composite/other breed lambs from NSW, while Composite/other breed lambs were also sought from South Australia.
The start-to-reserve gap averaged 9% this week, slightly lower than in previous weeks. For lots set with a gap of less than 10%, an impressive 93% clearance rate was achieved. Lots with gaps higher than 10% returned a 69% clearance rate.
Across the board, lots that sold at auction outperformed lots that sold post sale, averaging a 2% premium. Sold at auction lots averaged a Value Over Reserve of $19 above set reserves, with the start-to-reserve gap averaging 8% for an average $85/head set reserve and a $104 returned price. In comparison, lots updated to sold post sale averaged a -$1 VOR, a start-to-reserve gap of 10%, an average set reserve of $103 for a final selling average of $102.
Table 1: AuctionsPlus National Weekly Sheep and Lamb Prices
Report: Interactive Market Dashboard
Crossbred lambs had a perfect week, with the 9,955 head achieving a 100% clearance rate. The thin supply was hotly contested, with the average price lifting $4 to $92/head. From Dunneworthy, Victoria a line of 480 mixed sex Poll Dorset/Merino May/Jun new season lambs weighing 46kg lw returned $120/head.
Merino wether lamb offerings reached 7,535 head this week, but the smaller pool of listings wasn’t sufficient to maintain prices at last week’s level. Average returns decreased by $17 to $45/head, yet clearance remained strong at 80%. From Goolma, NSW a line of 600 store Merino wether lambs weighing 36kg lw sold for $62/head.
Merino ewes were keenly sought this week, with all lots finding a buyer. The 1,832 head returned $97/head, marking a $20 increase from last week. From Snowtown, SA the top price was returned by a vendor with four lots in the sale representing 497 Poll Merino ewes, ranging in weight between 55kg to 68kg and in age between 2.5 to 5.5 years and returning prices between $103 - $168/head.
Note: Prices as at 5pm Thursday, 22nd December 2023