Sheep Industry News September 2024

Market Report

TYLER COZZENS, PH.D. Livestock Marketing Information Center

Price Discussions

F rom January through July, the weekly national lamb cutout value – net carcass FOB – ranged from a low of $463 per cwt. to a high of $480 per cwt. with an average of about $470 per cwt. since the start of the year. This average is about $25 per cwt. higher than during the same period last year. Strength in the lamb cutout value comes from stronger prices in the shoulder, leg and loin, which have been tracking above year-ago levels since the start of the year. In the last few weeks, prices for the rack have started to trend above year-ago levels. Strength in individual primal values is price-supportive for lamb prices. Slaughter lamb prices – national negotiated live – have been following typical seasonal patterns for the last several weeks with prices ranging from $194 to $208 per cwt. Given the strength in the lamb cutout value, it would be expected that the slaughter lamb prices should follow a similar pattern to last year. During the second quarter of 2023, slaughter lamb prices were in the mid-$190 per cwt. range. Feeder lamb prices – three-market average, Colorado, South Dakota and Texas – seasonally dip during the third quarter but are expected to rebound in the fourth quarter. Recent prices have been around $215 to $240 per cwt. and tracking above

year-ago levels. Prices during the third and fourth quarters are expected to be above year-ago levels. SUPPLIES TRACKING ABOVE YEAR AGO Year-to-date through mid-July, cumulative weekly sheep and lamb slaughter was just more than 1.1 million head. This was 5 percent – or about 55,000 head – above the same period last year. Through the same period, weekly lamb and yearling slaughter was just under 1 million head for an increase of nearly 4 percent from the previous year. Mature sheep slaughter was 12 percent above the same pe riod to just more than 71,000 head through mid-July. Year-to date, mature sheep slaughter accounts for about 6.3 percent of total weekly sheep and lamb slaughter. This is compared to 5.9 percent during the same period in 2023. While weekly sheep and lamb slaughter have been tracking at a higher pace through mid-July, weekly dressed weights are below where they were a year ago. Year-to-date, weekly dressed weights are – on average – just above 62.4 pounds, which is almost 3 percent – or 1.7 pounds – below last year. Despite the lower dressed weights, lamb and mutton production through mid-July was nearly 3 percent higher than the same period in 2023. MID-YEAR TRADE UPDATE

The U.S. Department of Agriculture’s Economic Research Service recently released June trade data, including an update on lamb imports. Year-to-date through the first six months of 2024, lamb imports were 153.6 million pounds for an increase of 38 percent from the same period in 2023. Through the first six months of the year, lamb imports from Australia were 110.1 million pounds, 39 percent higher than a year ago. Lamb imports from New Zealand totaled 41.3 million pounds from January through June, up 38 percent from the same period last year. Through the first six months of the year, 72 percent of total lamb imports have come from Australia, 27 percent from New Zealand, and the

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