Sheep update – July 2022

Market fundamentals

National trade lamb prices decreased in July driven by variable quality and a lull in winter demand, prices decreased by 3pc to 750 c/kg cwt. This trend could continue for another 4-6 weeks before there’s a run of new season lambs.

Australia remains FMD free, however due to recent outbreaks in Indonesia, so close to our border, the risk of foot-and-mouth disease (FMD) infection is high for Australia and we must remain alert but not alarmed. Elders are actively working with industry and relevant government authorities (State and Federal) to keep FMD from our shores and also to plan and prepare, should the disease make it to Australia. For more, read our update on FMD.

The Elders Weather outlook forecasts multiple cold fronts across southern and eastern Australia from 27 to 31 July and 2 to 10 August. Rain events from the tropics have the potential to move south and generate rain from the 26 to 31 July and 7 to 11 August. The cold fronts are expected to bring widespread rain. In Western Australia (WA), the strongest cold fronts will start from 27 to 31 July and 7 to 11 August.

From the field

Western Australia

“Turnoff volumes for sheep and lambs were down over one million head for the October 2021 to April 2022 period compared to the previous 12 months.

“A large portion of the decline is the result of an 850,000 head decrease in sheep movements from Eastern Australia to Western Australia for the same period, stemming from a decline in live export activity. However, live export demand could increase come September as exporters look to fill new orders.

“In the short term, the next 6 to 8 weeks could present buying opportunities for those looking to expand flock numbers as markets respond to a number of factors.”

Dean Hubbard, Elders Livestock Manager, Western Australia.

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Market indicators

Note: States without sufficient data for the current month or without data for a specific stock category will not appear in the table.

Sources: Price data reproduced courtesy of Meat & Livestock Australia Limited.

The information contained in this article is given for the purpose of providing general information only, and while Elders has exercised reasonable care, skill and diligence in its preparation, many factors (including environmental and seasonal) can impact its accuracy and currency. Accordingly, the information should not be relied upon under any circumstances and Elders assumes no liability for any loss consequently suffered. If you would like to speak to someone for tailored advice relating to any of the matters referred to in this article, please contact Elders.