Wednesday 17 October 2012
Australia
The sheep market
Another week of fine, warm and dry weather was recorded throughout the Agricultural districts. This has meant that both crops and pastures have started to hay off with many producers now well into this years hay production. Producers in the northern wheat belt have begun harvesting.
Conditions in the sheep and lamb markets remain tight with all processors maintaining strong booking levels on a direct to works basis. This continues to be the preferred selling option for both producers, however there are waiting lists for slaughter space now in place.
Physical markets numbers were consequently again low at both weekly markets with record low totals being realised for this time of year. The lack of demand and lower prices experienced recently continue to deter producers from using the physical markets. All categories of sheep and lambs had reduced representation with ewe mutton the largest class to be offered, followed by new season lambs. There were tight supplies of wethers and ewe hoggets available.
Slipping demand
Demand from the processing sector for trade and heavy lambs was lower, primarily due to a drop at Katanning’s sale mid-week. This lower demand failed to deter either feeder or restocker demand on lightweight and store drafts of lambs which sold close to firm.
Ewe mutton demand was primarily from processors and restockers. Generally the market remained in line with last week’s prices. It is anticipated that there will be an increase in restocker demand as soon as stubbles become available. There continued to be no live export interest at either market on wethers and young rams. Most of these were purchased by export feeders and restockers with prices holding firm.
Source: Argentine Beef Packers S.A.
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