Lamb prices have continued to drive ahead, with Tuesday’s Eastern States Trade Lamb Indicator (ESTLI) moving above 800¢/kg carcase weight (cwt) for the first time in 2019. The last fortnight has seen multiple lots of heavy lambs crack $300/head, at CVLX Ballarat on the 14 May and at Griffith on 17 May – prior to July last year such levels would not have been expected.
The eastern states mutton indicator set a new record high on Tuesday when it reached 565¢/kg cwt. So far in 2019 the indicator has averaged 26¢ or 6% higher than the same period in 2018. The record price for NLRS recorded ewes was broken when a lot sold for $266/head at TRLX Tamworth on 20 May, and the following day wethers sold for an NLRS record price of $271/head at Ballarat.
Considering the high level of supply, it points to strong demand factors driving prices upwards. Sustained destocking has seen average weekly sheep slaughter in 2019 reach 133,000 head, an increase of 14% compared with 2018 and 9% above the five-year average.
Lamb slaughter levels have been relatively stable for the year-to-date, down 2%. However, compared to the five-year average, lamb slaughter has been tracking 1% higher.
© Meat & Livestock Australia Limited, 2019
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