Lamb and sheep still running high

Sheep and lamb prices have softened in recent weeks, but are still dramatically higher than same time last year.

Sheep and lamb prices are sitting pretty when compared to same time last year.

DESPITE softening in recent weeks, sheep and lamb prices are still above year-ago levels.

The national restocker lamb indicator last week reached 918c/kg carcass weight, a lift of 122c/kg compared to same time last year.

Meat and Livestock Australia figures show national trade and light lamb indicators lifted 74 cents to 916c/kg and 107 cents to 876c/kg respectively compared to June last year.

Rabobank senior proteins analyst Angus Gidley-Baird said lamb and sheep prices have been “bouncing along” for much of this season.

“I’m interested to see if prices will lift much further, such as they normally do in June and July, with limited supply when prices tend to lift,” Mr Gidley-Baird said.

“We hit a peak with prices in March, and they’ve been high for so long, is there much more capacity in the system to pay extra?”

He said potentially processing plants could see a slowdown or an extended maintenance period in winter instead of trying to draw more sheep and lambs out of the market.

MLA data showed eastern states’ sheep slaughter has dropped 40 per cent year on year to 59,000 for the week ending June 5.

“I wouldn’t be surprised if prices went up, but I have reservations about how much higher they could go, before new season lambs start hitting the market” Mr Gidley-Baird said.

“If the season is good, and people have feed around, we might see that feeder lamb price pick up a little into early spring.”