Sheep Industry News June 2025

compared to the first quarter. Based on this assumption of seasonal price trends, LMIC is forecasting a second quarter fed lamb price in the upper $170 per cwt. range, which would be about 15 percent below the second quarter in 2024. The lamb cutout value has been tracking steady with a weekly aver age of $462 per cwt. and a range of $459 to $466 per cwt. during April and into the first week of May. During the same period last year, the lamb cutout value ranged from $469 to $480 per cwt. with an average of $475 per cwt. On average, the lamb cutout value is down about 3 percent compared to the same April to early May period last year. Weakness in the lamb cutout value is due to lower year-over-year values for the leg, loin and rack, while the shoulder has been showing slight improvement. WOOL UPDATE Following the Easter recess, the wool market has taken a measured approach. In late April and into early May, on average, the Eastern Market Indicator for 17- to 22-micron wool was tracking about 1 to 2 percent lower compared to the prior month. The EMI for 23- to 32-micron wool was more mixed over the last month with some prices higher while some were lower, but the overall changes were marginal. The week of May 9 was one of the rare occasions when USDA/AMS reported domestic wool prices. The U.S. clean wool price for 19-micron wool was $3.37 per pound, while 20-micron wool was reported at $3.28 per pound. Prices for 21- and 22-micron wool on

a clean basis were $3.08 and $2.90 per pound, respectively. USDA reported prices on a clean basis of $2.67 and $2.30 per pound for 23- and 24-micron wool, respectively. Compared to a year ago, reported wool prices were generally even to slightly higher. Moving ahead, tariffs will remain an influencing factor in the sale of wool in the global market. The implementation of tariffs has been and will continue to be a fluid situation in the near term, which will likely lead to uncertainty in the wool market. This uncertainty has the potential to influence wool sales globally, especially in Asian markets. For example, any tariffs that impact the Chinese wool market could especially impact purchases of coarser, short and other lower-value wools. Exchange rates remain a driving economic factor on prices as the Australian dollar has strengthened against the U.S. dollar in recent weeks. The strengthening Australian dollar makes the purchase of Australian wool on the global market more expensive once the pur chase has been converted into U.S. dollars. Transitioning from late April to early May, Australian wool sup plies have also changed significantly during this period. The supply of bale offerings was tracking in the mid-30,000 to low-40,000 area. The week of May 9 saw a sharp decline in the number of bales offered to 28,508. This was a 29-percent decline from the prior week and the smallest weekly offering since July 2024. If supplies continue to tighten, then this could support prices in the near term, assuming no major changes to demand, tariffs or exchange rates.

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June 2025 • Sheep Industry News • 7