Australia sheep and lamb markets cool due to supply spike

The Australian sheep and lamb market has experienced a cooling period due to a significant increase in livestock offerings and export weakness. Between mid-July and mid-August, a surge in supply arrived at a time when demand struggled to keep pace, leading to a notable correction in livestock prices.

Sheep yardings saw substantial increases in New South Wales, rising from 23% to 39%, and Queensland, which moved from 44% to 62%. Tasmania also saw an increase from 40% to 51%. While Western Australia remained relatively steady and South Australia unchanged, Victoria was the only state to record a decline in sheep yardings.

Lamb supply saw even larger shifts. NSW lamb yardings more than doubled, increasing from 19% to 43%, while Queensland rose from 27% to 54%. Western Australia continues to have the strongest lamb supply, though it eased from 56% to 70%.

This increased availability has driven down prices across several categories. Light lamb prices recorded the largest drop, falling approximately 144 cents to around 1036c per kilogram. Other declines include heavy lamb, trade lamb, Merino lamb, and restocker lamb prices.