Livestock Marketing Information Center Says Strong Demand to Support Lamb Prices in 2024
January 29, 2024
During the American Sheep Industry Association Convention in Denver, Colo., Dr. Tyler Cozzens with the Livestock Marketing Information Center provided a lamb market update and Outlook. He looks for strong demand to support lamb prices in 2024 helping to increase profitability at all levels of the U.S. sheep industry from gate to plate.
"Specific things I'll be looking at from that report is the all sheep and lamb inventory levels," said Cozzens. "Where do we stand as far as as inventory levels at the beginning of the year. Other things we're looking at is the breeding breeding flock. This gives us an idea of what we should be expecting as far as supplies moving forward through 2024 and unarguably into 2025. The other thing that I'll be looking at specifically is the lambing percentage. It gives us an idea if we're seeing any increases or decreases in just potential supplies moving forward from here. These are the key figures I'll be looking for from the report."
He also talked about feed costs this year and what producers can expect.
"There have been a few years where things were pretty tough because of drought," said Cozzens. "This included available feed supplies and just range conditions. Looking at that from the feed cost side of things, we saw hay prices and corn prices move up a little bit higher during that drought season. We've saw some of that start to taper off here towards the end of 2023 and as we start 2024. So, on a feed cost side of things, I think that gives some breathing room for these producers."
He said it was really positive to see the lamb market bounce back in late 2023 and shared some of the reasons why.
"As we finished 2023, we saw specifically the lighter weight lamb prices start to move higher into the $2 range. As we've started 2024, where there's been a few of these markets where prices have been over three bucks. Very positive sign prices that we don't see very often, arguably in the lamb industry. A lot of that strength and prices also continued into the fed lamb price."
He looks for strong demand to support lamb prices here in 2024 helping to increase profitability at all levels of the U.S. sheep industry from gate to plate.
Source: Western Ag Network
