These statistics operating in parallel suggests the 2020 lamb cohort was larger in size than initially expected, delivering more supply to support global demand for Australian lamb, driven by the United Sates and China.
The parallels between both the slaughter and yarding volumes for the month of June compared to 2020 and the five-year averages indicate the current lamb market is performing stronger than initially expected supply-wise in 2021.
The current market conditions in the eastern states offers potential for producers to sell into a market that is performing stronger than it was for the same time in 2020.
Currently, the Eastern States Lamb Indicator (ESTLI) is operating at a premium of 116c compared to the same time in 2020, sitting at 875c/kg carcase weight (cwt). Producers with available lamb supply to sell into this appreciating market will be an interesting dynamic to watch moving forward, MLA reported.
The impact of premium pricing on supply will be governed by the way producers choose to play their cards, either by rebuilding, or by taking advantage of the current market strength. This is a scenario presenting a similar conundrum for beef producers.