Heavy lamb market comes off its peak

Erratic results across range of saleyards reflect weaker export demand, but medium and lighter lambs fare better.

In flux: Recent sheep sales indicate demand for extra heavy lambs has become erratic. Picture: Dannika Bonser

SIGNS of a market correction for heavy lambs have emerged in recent days as export demand weakens.

Cheaper prices were reported at Bendigo and Corowa in southern NSW earlier this week, following on from easier results at the big Wagga Wagga market last week.

Official saleyard data gathered by the National Livestock Reporting Service shows heavy lambs (categorised as 22kg plus) dropped by 33c/kg in the past week.

On Monday night the national average price was listed at 866c/kg cwt, below the level of last June. Showing how demand for heavy lambs has flattened and become selective was the opening pen of heavy lambs at Corowa on Monday.

The Weekly Times was told buyers offered $216 for the pen, which the NLRS reporter had estimated at 32kg.

When the auctioneer implored buyers to “get real”, the next offer was $198.

It was an extreme case of how demand for extra heavy lambs has become erratic.

Bidding at Bendigo on Monday did fluctuate across the sale, although there was still a top price of $301 recorded for a pen of crossbred lambs estimated above 40kg cwt.

Most extra heavy lambs above 30kg cwt have varied from $240 to $270 in the past week, for estimated averages of 750-780c/kg.

There was an incredible amount of weight in lambs, with nearly 20 per cent of the yarding at Wagga Wagga last Thursday estimated above 30kg cwt.

A breakdown of saleyard data for the first two weeks of June shows the supply of extra heavy lambs has more than doubled on levels witnessed a year ago.

Price trends for heavy lambs sized from 24-28kg cwt were also cheaper on Monday, although they were still tracking above 800c/kg, according to NLRS reports.

Most of those lambs made from $207 to $240, with a good run estimated as costing meat processors from 820-850c/kg cwt.

Medium and lighter domestic lambs have held their value better amid limited supplies.

The national saleyard price indicator for was at 891ckg cwt on Monday night — a correction of 20 cents in the past week but still higher than last June.

The other category of the lamb market selling well in comparison to heavy crossbred lambs was Merino stock.

Merino lambs off feed consistently made from $200 to $238 in the past week, with a quality run at Swan Hill last Thursday estimated over 820c/kg cwt.

On Monday, buyers also reduced rates for Merino lambs at Bendigo, with the best lines above 24kg estimated at 770-880c/kg cwt.

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