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Thursday, January 08, 2015

Lamb markets in 2014 – a year to remember

By Augusto Semmelroth  |  Source: MLA's NLRS

Despite the record slaughter levels seen during 2014, lamb and mutton markets still performed exceptionally well during the year. From the lows of January, all indicators embarked on a steady uptrend in the first half of the year to reach near record highs. The second half of the year was marked by ongoing strong throughput levels and a mild seasonal price downturn in spring, followed by a robust price rally in December.

Key points:

  • Lamb and mutton were the undisputed best performing livestock categories in 2014, with yearly gains varying from 60-219¢/kg cwt, or 15-70%, on the east coast.
  • Although most indicators didn’t finish the year at their peak, they posted solid gains in December and are expected to start 2015 on a very positive note.
  • The Eastern States Trade Lamb Indicator (ESTLI) managed to end the year142¢, or 35%, higher than it started, at 548¢/kg cwt.
  • At least one lamb indicator in each state broke through the 600¢/kg cwt mark in 2014, including the ESTLI.
  • Despite the remarkable performance of lamb markets, mutton markets still outperformed most lamb indicators in all states, with yearly gains in the order of 35-60%.
  • Lamb prices in WA and Tasmania are still lagging behind their eastern states counterparts but should catch up in the first quarter of 2015.
  • Tasmania was the only state to see some indicators finish the year lower than they started. That’s mainly because prices were comparatively stronger to other states in January. 
  • The price rally seen in the last three weeks of 2014, coupled with the expected contraction in supply and a lower A$, suggests lamb and mutton prices will continue to move higher in the first quarter of 2015.    

Mecardo information is provided to assist in your marketing decisions. It contains a range of data and views on the current market. It is not intended to constitute advice for a specific purpose. Before taking any action in relation to information contained within this report, you should seek advice from a qualified professional. The information is obtained from a variety of sources and neither Mecardo nor Ag Concepts Advisory will be held liable for any loss or damage whatsoever that may arise from the use of information or for any error or mis-statement contained in this report. 

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