Sheep Industry News December 2022

MARKET REPORT Continued from Page 7

to $290 per cwt. compared to $330 a year ago. But, the heavyweight, 100 to 150-pound category reported prices at $125 compared to $265 last year. On the retail side, USDA’s retail lamb report for the first week of November indicated more grocery stores were featur ing lamb. Prices for loin chops, shoulder chops and racks were below a year ago. The decline in wholesale prices in recent months has made domestic leg prices more competitive with Australian lamb. The U.S.-Australian leg price differential declined to under $2 per pound from a peak of almost $4 per pound late in 2021. The lamb market continues to have some mixed signals. On the positive side,

WOOL The wool market continues to struggle compared to a year ago. Prices across all reported microns from 17 to 32 were below a year ago in mid November with the largest declines to a year ago in the 17 (down $1.82 U.S. per pound) and 18 micron (down $1.56 per pound U.S.) classes. Prices also declined for each mi cron except 32, which increased 2 cents to U.S. $0.73 per pound. Prices averaged during the last four weeks indicate a similar story with lower prices than last year and larger declines for finer wools. The premium for finer wools compared to lower quality is smaller than a year ago also. For example, 17 micron wool carries a U.S. $2.47 per pound premium to 21 micron compared to U.S. $3.69 last year. The AWEX Weekly Wool Report for Nov. 9 indicated that about 9.6 percent of wool offered for sale was withdrawn, leaving 31,095 bales for sale. That was fewer bales for sale than the week before. But, about 9,000 more bales have been offered for sale this year compared to last year. Not only are larger supplies offered for sale weighing down prices, but it’s likely that the overall world economy is hurting demand. Countries across the world are struggling with infla tion and rising interest rates. Recession fears are likely pressur ing prices lower, adding uncertainty about future finished goods sales that usually struggle in difficult economic times. The strength of the U.S. dollar is also having a negative effect on the wool trade. Those same economic fears have weighed down competing fiber prices – such as cotton – in recent months. Adding to the pressure on prices is that buyers become hesi tant to buy now when prices are declining because they might be able to get the same product cheaper later.

declining dressed weights and production indicates less supplies contributing to better prices. But, overall imports remain large and supplies in cold storage are growing, likely pressuring prices. The recovery in very lightweight lambs is encouraging for that part of the market, but heavy lambs continue to struggle, indicat ing continued potential problems with demand for those lambs. COMPLETELY UPDATED Sheep Production Handbook Fully Searchable USB

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