Lamb Prices Lower July 2012

The glut of heavy lambs in the feedlots is taking it’s toll as the new crop comes to market. Until the backlog is cleared, lamb prices are going to be under continued pressure. (From Sheep Industry News, JULIE STEPANEK SHIFLETT, PH.D. July 2012)

Slaughter Lambs Weakened
Slaughter lamb prices softened in May at both auction and in formula sales. LMIC forecasted in late May that second quarter slaughter lamb prices could gain 0.5-percent quarterly and gain another 1 percent in the third quarter. Historically, slaughter lamb prices gain in the second quarter before softening in the third quarter.

Live, slaughter lamb prices at auction in May averaged $140.41 per cwt. down 5-percent monthly and down 22 percent year-on-year. Prices at auction ranged from a low of $126.13 per cwt. in San Angelo to a high of $157.50 per cwt. in Ft. Collins.

Equity Cooperative Livestock Sales Association has seen sharply fewer lamb trades this year, but did have a late-May sale of Texas springers. Ninety-three lb. lambs received $152.75 per cwt. and 83-lb. lambs received $153 per cwt.

On the bright side, feed costs are easing a bit. Corn prices are projected to soften as prospects of a good harvest remain promising. The drought in Texas appears to have run its course and there is some optimism that flock rebuilding is underway.

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