Midwest sheep and goat market report for the week of June 12

Midwest sheep and goat market report for the week of June 12
RRN Photo. Goat enjoy hay in the feedbunk.
June 12th, 2021 | Clay Patton

For the week ending June 12 the Midwest sheep and goat market was mixed with slaughter lambs attracting strongly higher prices. Goat prices were unevenly steady across the market. All but one sale profiled for this report reported slaughter lamb prices climbing $10-$30 higher. Which has everyone asking the question what is behind this renewed strength in the market. There could be some ethnic holiday demand as we come into Eid Al Adha. This holiday concludes with a 3 day festival or feast that will run July 20-23. On the traditional retail side of the trade it wasn’t the greatest week for lamb. USDA puts lamb and veal retail data together which gives the first hand appearance that lamb retail demand climbed this week, but in reality it appears veal demand soared and conflicted the data slightly. USDA retail price data shows, for the week of June 4-10 lamb and veal retail activity index increased by 13.5%, features decreased by 0.3% and the special rate was unchanged. The lamb retail activity index decreased by 44.6% this week, as veal retail features increased by 262.5%. The roasts decreased by 52.7% while chops decreased by 16.0%. Ground Lamb and Butterflied Boneless Leg items were the most widely featured items among the Lamb features as prices were mixed. In the Veal complex Shoulder Blade Chops, Stew Meat and Leg Cutlets were the most advertised items as prices were mixed. In the activity graph portion of the report it does show that for the first time since April lamb chops outpaced lamb roasts for retail activity. This could show that consumers are wanting to grill lamb chops. Which is a great sign for growing retail demand if backyard barbeques start to feature more lamb. 

Other commodity markets continue to experience volatility, but grains caught lower prices at the end of the week. The WASDE report out on Thursday places the US row crop in position to help fill the gap that will be left by a poor South American corn crop. However there is a lot of summer to go and things can always change. Rains predicted over the weekend also look to slow grains to the upside. However if those rains don’t verify or come in with little impact then the market could quickly reverse higher. 

Other feed input markets to report include the hay market. Kansas and Nebraska reported steady prices on what old crop hay is left. There are a lot of questions on where to price the first cutting of new hay. It appears the rule of thumb will be price where it was at the end of last year and go adjust accordingly. First cuttings of alfalfa are on the ground and being baled in Kansas and Nebraska. Nebraska reports heavy weevil pressure which limited yield on some hay. It also forced others to green chop the first cutting of alfalfa. Hay prices are likely to stay strong and move higher throughout the year. Hay lost acreage this year due to row crops. The first cutting wasn’t great and now it’s turning hot and dry. Plus demand is expected to be strong with the Northern Plains likely seeing a short gazing season. What doesn’t get culled will likely need to be fed due to short grass in pastures. 

For the week ending 6/11 lamb slaughter under federal inspection was estimated at 33,000 head on Friday. There is an expected Saturday slaughter of a 0 head. That will bring the total weekly slaughter to 33,000 head. That’s 2,000 head more than the previous week and 5,000 head less than the previous year. Year to date lamb slaughter is at 876,000 head. About 1.4% or 12,000 head more  than a year ago. That was a decrease of about 0.8% from it’s lead last week. Cattle slaughter saw a similar pattern as it’s lead to last years slaughter pace dropped 0.1% to +5.7% ahead of the previous year. Hog slaughter remains 1.7% above the previous year. USDA data shows that goat slaughter under federal inspection was 8,655 head for the week as of 6/11. Lamb and mutton production under federal inspection through 6/11 is estimated at 2.1 million pounds. That is 100,000 pounds or 2.6% more than the previous week. Year to date lamb and mutton production is estimated at 57.8 million pounds. This is the first week that 2021 production dropped behind 2020 by 0.3% or about 100,000 pounds. The average live lamb weight for the week ending 6/11 was 126 pounds, unchanged from last week and down 8 pounds from last year. Dressed weights for lambs this week were 63 pounds. That is unchanged from last week and 4 pounds lighter than a year ago. 

Sale reports from the week

Texas sales both Hamilton and Producers Livestock were steady to $10-$20 higher on slaughter lambs both wooled and haired. Feeder lambs untested in both markets. Kid goats were mainly softer. Hamilton noted slaughter size as steady, but feeders sharply lower. So goats were $10-$30 lower on all classes. Slaughter wool lambs 70-105 pounds were $180-$280/cwt, haired sheep slaughter lambs weighing 50-75 pounds brought $210-$320/cwt, feeder goats weighing 25-40 pounds brought $185-$360/cwt, slaughter goats weighing 40-70 pounds brought $240-$380/cwt, Wethers at producers weighing over 100 pounds brought $370-$380/cwt.

https://www.ams.usda.gov/mnreports/ams_2014.pdf

http://www.hamiltoncommissioncompany.com/wp-content/uploads/2010/12/6.7.21-sg-sale.pdf

South Dakota at Sioux Falls saw a strong market with a new buyer in the stands. The barn notes a new buyer helped to create a strong bidding atmosphere. Slaughter lambs were $10-$15 higher. Slaughter goats were once again very light in numbers to try and establish a market. Feeder lambs weighing 35-45 pounds brought $280-$340/cwt,  Slaughter lambs weighing 65-90 pounds $247.50-$270/cwt, slaughter goats weighing 55 pounds brought $305-$380/cwt

https://www.ams.usda.gov/mnreports/ams_2016.pdf

Kalona Iowa saw slaughter lambs steady to $5-$15 higher, haired lambs were firm on a limited test. On the goats, slaughter goats were steady on all sizes. Cull goats were steady as well.  Feeder lambs weighing 45-55 pounds brought $240-$272.50/cwt, slaughter lambs weighing 65-85 pounds brought $250-268/cwt, hair lamb slaughter size weighing 65-80 pounds brought $245-$252, feeder goats weighing 25-35 pounds brought $85-$135/head, and slaughter goats weighing 55-70 pounds brought $185-$250.

https://www.ams.usda.gov/mnreports/ams_2153.pdf

Centennial livestock saw an uptick in receipts this week by about 800 head. That helped to give a better market test. Slaughter lambs were $10-$20 lower. Feeder lambs not enough for a market comparison. Slaughter goats were lower, but nannies and does were steady. Slaughter lambs weighing 75-115 pounds brought $260-$285/cwt, hair lambs slaughter size weighing 65-90 pounds brought $235-$260/cwt, feeder goats weighing 30-45 pounds brought $100-$175/hd, slaughter goats weighing 55-70 pounds brought $185-$230/hd, wethers weighing 70-85 pounds brought $270-$335/hd. 

https://www.ams.usda.gov/mnreports/ams_1899.pdf

Colby livestock in Kansas sold stronger than last week. Sale manager Leelan Wilson commented that quality was good again this week and there was a higher undertone on all classes of livestock. For individual quotes follow the link below. 

Columbus Sales Pavillion hosted their monthly sale this week. Participants of the auction called the slaughter lamb market there very strong. There is no sales receipt report from the market that I can find. 

Catch the audio version of this report Saturday mornings at 7:40 AM on 880 KRVN.

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