Sheep Industry News August 2023

Market Report

DAVID ANDERSON, PH.D. Texas A&M AgriLife Extension Service

Some Good News in Lamb Markets

W hile prices continue to be below a year ago in some markets, other markets are seeing improving prices to points higher than this time last year. Data points like trade, stocks and weights indicate some bullish news, as well, heading into summer’s dog days. PRICES Prices for heavyweight slaughter lambs (100 to 150 pounds) reported at Sioux Falls, S.D., have been on an upward trend almost all year. They climbed to $208 per cwt. by the first week of July, up from $133 per cwt. at the beginning of the year. The huge price slide beginning in May of last year means that prices today are 68 percent higher than they were at this time last year ($123 per cwt. for the first week of July 2022). The national negotiated live lamb slaughter lamb price is another market where prices have climbed to be at least equal to a year ago at $182 per cwt. Other markets have not fared as well, with prices flat to lower since Easter and continuing to be lower than a year ago. In early July, wooled and shorn lightweight slaughter lambs from 60 to 90 pounds in San Angelo, Texas, were about $210 per cwt., which was

about 85 to 95 percent of their price a year ago. Prices for the same weight slaughter lambs at New Holland, Penn., averaged about $276 per cwt. in early July, 10 to 20 percent lower than last year. During the 2017-2021 period, heavyweight slaughter lamb prices have tended to peak seasonally in about June. The increase in price this year roughly mimics that normal pattern so far this year. But it’s worth remembering that some other factors – includ ing lamb demand – have impacted prices. On the meat side, wholesale cut prices have tended to continue to drift lower. Racks have dropped dramatically in recent weeks. For example, medium boxed lamb racks have declined from $11.88 per pound to $10.53 per pound in the last eight weeks. The cutout has drifted lower all year, hitting $431.45 per cwt. at mid year, almost $120 per cwt. below a year ago and about $40 per cwt. lower than in January. The U.S. Department of Agriculture’s retail lamb featuring price data has indicated a lot of volatility in retail lamb prices during the last several months. An April average price of about $8.03 per pound soared to about $10.30 per pound in May. June retail prices dropped about $2 per pound to about $8.20 per pound.

PRODUCTION Lamb and yearling slaughter and meat production hit their seasonal, Easter peaks back in March and April. But slaughter and production have moved in slightly different directions this year. Lamb and yearling slaughter is up 5.5 percent this year com pared to last year. During the last six weeks, slaughter is 3.8 percent above the same period last year. While the year-over-year gap has narrowed a bit, slaughter is still running higher than a year ago. For the year to date, lamb meat production is about 0.5 percent lower than last year. In the last six weeks, production is 3 percent lower than last year. The differ

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