Sheep feeders a market mystery

LAMB numbers coming into most of the big saleyards are at low numbers but prices have eased in most cases. It would appear that the forward contracts offered for May/June delivery were taken up and this has given processors some assured supply without putting extra pressure in the saleyards.

The other unknown is the number of lambs in feedlots throughout the country, there is no doubt that the lamb feedlot industry has grown significantly over the last couple of years and particularly the last 12 months.

Unlike cattle feedlots that are very regulated and produce regular updated numbers in the feedlots at any particular time, the sheep feeders aren’t regulated yet and so we don’t know the numbers.

The one thing we do know is that the lamb kill in April in the Eastern States sat at 1,328,970 head compared with 1,569,264 head and that is a big difference.

Most interstate saleyards reported lamb averages between 1,050c and 1,100c/kg carcass weight over the last week and although that is off the highs of 1,150 to 1,200c a few months ago it is still a long way in front of this time last year when we were around 800c/kg. It will be an interesting next couple of months in the lamb selling season.

Mutton prices continue at very high levels on the back of very small numbers in the saleyards and direct to the works. Averages between 800c and 850c/kg are common through most yards which mean it is a pretty light sheep to make less than $150/head with plenty of heavy and extra heavy sheep between $220 and $300/head. Not bad for an old cast-for-age sheep!

Cattle markets on the Eastern seaboard have a recovered a few cents from a month ago, when there were record numbers coming into the saleyards, on the back of smaller numbers coming out of the north and in particular we have seen cow prices improve 10c to 20c/kg with Victorian prices sitting between 380c and 410c while in NSW cow prices are more in the 350c to 380c/kg liveweight.

The recent rains in some parts of the country have come just in time and will certainly the help the cattle markets going forward. Interesting time.