Sheep Industry News June 2022

long way to determining lamb prices, imports and stocks in cold storage. One portion of growing lamb demand is new consumers. An interesting piece of data is the number of times Google is used to search “How to cook lamb.” This data implies consumers are looking for ways to prepare the product and might reflect first time buyers or less experienced consumers. The attached chart contains an index of the number of weekly Google searches going back to 2004. The data implies a steady growth in the number of searches. That might include an increasing number of people using Google or the growth in search engine use to find recipes and instructions, but also indicates more interest in lamb. It certainly coincides with growing demand in recent years. The data indicates two peaks per year in searches – around Christmas and Easter. The Christmas searches might indicate consumers having a special meal and wanting to prepare it cor rectly. It is an interesting set of data and might include several implications. PRICES Lightweight, feeder lamb prices (average of Colorado, Texas, and South Dakota) have rebounded during the last six weeks from $261 per cwt. to $315 per cwt. They remain slightly above last year. Heavy, wooled lambs at Sioux Falls, S.D., averaged $220 per cwt. for the first week of May – slightly lower than last year at this time. Mid-summer prices in for these lambs in 2021 peaked at $284 per cwt. While supplies are tightening, it might be difficult for prices to hit those heights again given demand.

On the meat side, the lamb cutout has drifted lower all year. It was $576 per cwt. during the first week of May and started the year at $613 per cwt. It remains about 24 percent above a year ago. Generally, most primal cuts have drifted lower so far this year, but remain above a year ago. WOOL The Australian Eastern Market Indicator reported wool prices generally higher across all qualities for the first week of May compared to the prior week. Price increases ranged from U.S. $0.11 per lb. for 18 micron to U.S. $0.12 per lb. for 20 and 21 microns to U.S. $0.02 per lb. for 28 micron wool. Only the price of 18 micron wool is higher than the first week of May a year ago. Other reported micron categories are less than this time last year. The overall indicator remains lower than earlier in the season, but stronger than this time a year ago. In general, better prices since the peak of the pandemic have brought out more bales for sale during the course of the season. One of the market trends since the pandemic has been the widening of the price spread between micron classes. For example, the price difference between 18 and 21 micron wools was about $0.49 per pound from July 2019 until the summer of 2020. Since then, the price spread has averaged $2.20 per pound in response to stronger demand for finer wools. At the end of April, the U.S. Department of Agriculture released annual statistics on apparel imports and exports for 2021. Wool apparel imports jumped 23 percent – to 454 million pounds – over pandemic impacted 2020 imports. Wool ap parel exports increased 34 percent to almost 50 million pounds

in 2021. Growth in exports and imports are indicative of world economic recovery. The course of economic growth under infla tionary pressures will likely affect demand across all fibers. SUMMARY Lamb supplies should further tighten seasonally as we head into summer, supporting prices. But demand will likely be under pres sure as consumers respond to high prices across all goods and services. Continued drought will be a critical factor in mature sheep slaughter as the summer progresses and will be worth monitoring. On balance, prices are likely to remain historically high during the next few months.

8 • Sheep Industry News • sheepusa.org