Sheep Industry News September 2022

kets have had instances of no bids at all for lambs at times. The non-traditional market will likely not be immune to lower prices. Lambs will likely be sold for slaughter at lighter weights this Fall, rather than to feedlots. More lightweight lamb supplies will force lower prices in the lightweight slaugh ter lamb market. Meat prices have also begun to decline. For example, boxed shoulders have declined to $376 per cwt., down from $450 two months ago. They were $609 per cwt. last year at this time. Legs have declined about $100 per cwt. from a year ago, to $469 per cwt. The cutout is also down about $100 per cwt. compared to a year ago. SLAUGHTER, STORAGE & IMPORTS Lamb and yearling slaughter is 5.2 percent below a year ago during the last eight weeks. For the year, it’s down 10.4 percent. Slaughter is smaller than what might be indicated from the USDA Sheep Inventory Report. This implies more lambs being “stored” alive, meaning that they have not come to slaughter yet. The supplies of live lambs will keep a lid on the market in the coming months. As lambs have backed up in the system, dressed weights have increased compared to last year. In early August, lamb and yearling dressed weights averaged 68 pounds compared to 58 pounds last year.

The five-year average, however, is 68 pounds. It does suggest that last year was the aberration as high prices pulled lambs into slaughter earlier. The heavier weights do likely suggest a growing risk of over-finished lambs with more fat. The slowdown in lamb demand has not translated to higher cold storage levels yet. About 23 million pounds were reported in storage in June, compared to 21.5 million pounds in June 2021 and a five-year average storage of 38.2 million pounds. That suggests that more lamb is being stored live rather than in a box in storage. Cold storage data might also be lacking as there might be facilities that are not included in the monthly survey. But, cold storage stocks might increase as more lambs move to market. Imports totaled 23.8 million pounds in June, below last year’s 29.4 million pounds. June was the first month this year with imports below a year ago. Lower imports from Australia accounted for all of the year-over-year's decline. Imports from New Zealand totaled 6.9 million pounds and were equal to a year ago. Imports typically decline through September, so seasonally declining imports might help the supply situation. Mutton imports increased dramatically at the end of last year, but were 57 percent below June of last year. See MARKET REPORT on Page 8

September 2022 • Sheep Industry News • 7