Key points:
- NSW restocker buyers are paying a 7% premium to the national price, evident of the strong demand from the state for restocker lamb.
- Vealer cattle are making up the majority of the WYCI yarding, with vealer steers receiving a 7c premium to the overall WYCI price
- Encouragingly, WA restockers are purchasing most of the vealer heifers as they place a longer term focus on rebuilding their herds.
Restocker lambs
The ³Ô¹ÏÍøÕ¾ Restocker Lamb Indicator (NRLI) has strengthened in the past week as the supply of restocker-eligible lambs tightens across the country, with the favourable seasonal conditions driving higher turn-off weights and continued demand to capitalise on the seasons.
As at Tuesday 15 February, the indicator had risen 62c week-on-week and is 45c higher than year-ago levels, now sitting at 960c/kg cwt. With MLA’s forecasting the national flock will grow by 3.75 million to 74.4 million head in 2022, the continued confidence from sheepmeat producers and demand for restocker lambs in current market terms will mean this flock growth is supported.
The NSW restocker lamb price is currently operating at a 7% premium to the national price, having risen by 45c/kg cwt week-on-week to sit firm on year-ago levels. This data is indicative of the demand in NSW for restocker lambs at present, as producers look to capitalise on available feed – but supply remains relatively tight due to challenges with weight gain management.
Feeder buyers continue to dominate WYCI
Feeder buyers in the west are continuing to purchase heavily, currently accounting for 63% of the yarding or 664 head. Vealer cattle are accounting for most of the yarding or 79%, with vealer steers headed to the feedlots.
In a positive sign for WA as it looks to rebuild its herd, restockers are purchasing vealer heifers heavily. While the effects of this won’t be felt in the short term, it is evident WA producers are purchasing young females to grow into breeders and build numbers over the next three years.
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