Sheep and wool climb continues

This is according to Meat and Livestock Australia’s (MLA’s) sheep industry projections July update, released on Monday night. 

The report said the national trade indicator hit a record high of 627 cents a kilogram (carcase weight) in June on the back of the autumn break. This market strength had continued into July. On Tuesday night, the National Livestock Reporting Service trade lamb indicator was at 623c/kg, the heavy lamb indicator at 631c/kg, trade lambs over-the-hook indicator was at 610c/kg and heavy lambs OTH was at 602c/kg.

The top end of trade lambs OTH, however, was trading as high as 670c/kg, showing the effect of the gap between old and new season lamb supply.

MLA’s July update predicted the 2016 spring lamb market to unfold in a similar pattern to last year, with lambs being turned off at a slightly younger age while maintaining target weights due to what is shaping to be a big spring.

This is in line with feedback from agents. Michael Martin, Landmark Narrandera, said while some new season lambs were beginning to emerge, he expected the majority would be delayed due to the wet.

“If we get a decent two to three weeks (weather-wise) there’ll be a few new season lambs come onto the market,” he said.

He said by this time last year there had already been a fair few suckers sold, but the cold, wet 2016 season had slowed this year’s growth rates. 

At Trangie, Barlow and Peadon director Andrew Peadon wasn’t expecting any great numbers of new season lambs until early September, with just a handful entering the market so far.

Walcha also had a tough summer and autumn and while a break had arrived, it remained too cold for pasture growth so many producers had fed stock into winter, said Elders agent Sam Martin. Producers had therefore off-loaded lambs they usually would have taken to heavier weights.

“In comparison to other years, it’s a very short supply,” he said.

He also had seen producers retaining as many ewes as possible, with the expectation first-cross ewes would be an expensive commodity to buy back into.

Monaro Livestock and Property director Will Dixon, Cooma, said the bulk of lambing was yet to arrive in his region, but good potential existed with reports of excellent scanning results. The bulk of the Monaro’s sucker lambs don’t tend to hit the market until early summer.