Hot summer hits sheep prices

Meat and Livestock Australia’s (MLA)  market information manager Ben Thomas said the enduring similarity between 2016 and 2015 sheepmeat trends was becoming more and more remarkable after a drier summer and with a weaker Australian dollar. 

While Mr Thomas lauded lamb’s current performance - which included a five per cent hike in lamb suppply - he predicted winter to prove a true test. 

“It’s interesting because feed and water availability was a bit better last year than it was this summer,” he said.

“If we look at the average export price, it was a little higher last year too.

“The Eastern State mutton indicator is the only one behind last year - which I take as a real indication of a long, hot summer.”

The MLA December 2015 sheep and lamb forecast pointed to a tighter winter and Mr Thomas said he would be surprised if the market remained as strong. 

“From autumn to winter 2015, when there’s generally better conditions, we saw lamb prices increased from 500 to 585 cents a kilogram,” he said. 

“You can never know for certain, but it is going to be a real test of market resilience if that same level can be reached in 2016.”

He said the weaker Australian dollar - even though it had strengthened during the past three weeks - supported the market expectation of there being a tighter supply going into winter months. 

However, Mr Thomas didn’t expect a dramatic dip. 

“Our revised (lamb price) figures go out in early April. I’d be very surprised if there are any major adjustments,” he said. 

Riverina Livestock Agents principal James Tierney, Wagga Wagga, said he expected a drop in lamb numbers but was optimistic of sheepmeat prices strengthening post-Easter.

“It’s been a bit of improvement on the prices late February and early March, where things dipped below 500 cents,” Mr Tierney said. 

“But once we get Easter out of the way - and the shorter killing weeks - you’d like to think things would keep improving.”

Numbers were up significantly pre-Easter sales last week, including Griffith, Wagga Wagga, Cowra. 

Medium and heavy mutton at Wagga Wagga sold $4 to $14/head higher with prices strengthening as the market progressed according to MLAe. 

Heavy ewes made from $81 to $135/head to mainly range from 300c/g to 343c/kg cwt.  

Generally trade lambs were $4 to $9/head dearer, mostly ranging from 516c/kg to 528c/kg cwt. 

Merino trade lambs were keenly sought, with a single pen igniting the bidding to sell at $139.60/head.