May 26, 2004

Mutton Supply Dictates A Dearer Trend In Australia

Australian eastern states mutton prices reached over 190 cents/kg for the first time in two weeks, mostly assisted by a 16% reduction in throughput at NLRS reported saleyards.

Heavy sheep showed large price gains of up to 30 cents/kg cwt as processors competed strongly for the limited number on offer. Medium weight (18-24kg) ewes sold for slaughter, gained 14 cents to average 194 cents/kg cwt.  Similarly, wethers experienced a large increase of 12 cents to sell around levels of 198 cents/kg cwt.

Overall quality continues to be satisfactory, but light, plainer stock (0-18kg) do not appear to be declining at the same rate as the heavier weights.  In many sheep producing regions, lambing is currently a priority and producers are possibly offloading stock not suitable for breeding purposes.  Light ewe yardings slipped by 10%, while medium weights (18-24kg) fell by 30% on last week.