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Tuesday, February 27, 2018

Flock rebuild impact on saleyard to OTH spreads.

By Matt Dalgleish  |  Source: MLA, NLRS, ACA

We’re in the midst of a flock rebuild with sheep offtake levels trending below twelve percent since late 2016. Historically, an offtake ratio under this level has been consistent with a period of flock expansion and indicative of a season where supply is tighter than normal. This analysis piece takes a look at the spread behaviour of national sale yard trade lamb prices compared to over-the-hooks (OTH) prices to see if there is any discernible seasonal pattern noted during a flock rebuild phase and what this may mean for the current season.

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