Sheep Industry News January 2024

showing positivity not only as we close out the year, but also now have the biggest positive sign since the summer of 2022. As we head into 2024, production totals – number of head slaughtered and dressed weights – in the next few months will be a key signal for the potential ceiling for the Easter run in 2024. TRADE At the time of this writing, the latest export data available was for October as we head into the close of 2023. American lamb and mutton exports accumulated $1.1 million monthly value in September and in October, which is $287,000 lower than last year for the same two months, but still the highest since March 2023. In September, the United States exported 287 metric tons of product, while in October, the country exported 183 metric tons of product. The vast difference in tonnage exported while still having the same value indicates that there are markets paying for quality American lamb. From an import standpoint, during September and Octo ber, the United States imported 4.4 million pounds of lamb and mutton with the majority being sourced from Australia. While there is a sticker shock to 4.4 million pounds, the vol ume is still vastly lower compared to the 12.7 million pounds imported during those two months compared to the same time a year ago. WOOL As we close the year, there have been continuously increas ing weeks of positivity from the wool sector. In particular, the U.S. fine wool grades (micron 16.5 to 19) have gained steam. Micron 17 graded wool gained the most steam in early De cember at an increase of U.S. $0.10 per lb. Medium wool (micron 19.5 to 24) in the U.S. decreased before the December recess. In Australia, the medium wool grades are on the opposite with continued weekly increases, with 21 micron graded wool increasing at the greatest rate. In crossbred wools (micron 25 to 32), prices for 25 and 26 mi cron both increased the last few weeks in Australia and in the United States, while all other grades were steady to lower. The increase in prices is largely due to China mills’ demand. During the past few weeks, China has increased its demand for Australian wool. The China Wool Textile Association made known this was expected back in May. The reason for the increased demand is because China consumers are want ing more “locally” produced wool products, which is a market shift that was influenced by the COVID-19 pandemic situa tion in China. At the time of this writing, the market is headed into recess,

thus, prices will most likely hold up around the same prices as we head into 2024. SUMMARY As the year kicks off, producers had a rough – although some positive – time in 2023. As we kick off this year, the mar kets have shown positivity compared to the same time a year ago. As producers watch the drought monitor, feed costs and market prices, there also seems to be some upward momen tum as we kick off this year.

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January 2024 • Sheep Industry News • 7