Tracking Australian heavy lamb cutout indicator trends in USA wholesale market

With seasonal easing of Australian heavy lamb prices, the current indicator was reported as $5.19 per kg national. Prices for chilled Australian lamb racks have held up and lamb shortloin prices have firmed.

We use a composite cutout of chilled racks and shortloins and the balance frozen lamb cuts as reported by the weekly USDA imported lamb traded, part of USDA mandatory price reporting.

These are wholesale prices in USD. 2.5 million lbs of Australian and New Zealand lamb was reported by USDA for 28 November 2016 (1,133 kgs). 1,108 tonnes of Australian lamb was entered into USA in week 48 (26/11/2016). Only 293 tonnes of NZ lamb was entered the same week. Year to date Australian lamb entries into USA are up 10% to 48,476 tonnes. Australia has achieved 70% of total imported lamb entering USA and a great deal of this product would be directed to foodservice.

The indicative trends are showing improved margins for Australian lamb as seasonal Australian lamb prices ease. Prices all is AUD$.

While there has been some easing in USA lamb prices reported from scan data to September 2016, unit prices have held up well considering the huge stocks of beef and pork in cold storage and volume of protein hitting the market. Unit value for Sept 2016 for all lamb at US retail was USD$7.35lb.(AUD$21.75 kg)