Lamb buyers are turning up the heat on prices

Price indicators for lamb continue at a strong pace as competition from exporters and domestic buyers is ramped up at saleyards.

LAMB prices continued their strong pace in early trading this week as buyers are forced into the auction system for supplies.

Feedback from agents suggests fewer lambs are being sold direct this spring, and competition from exporters and domestic buyers has ramped up at saleyards.

National saleyard price indicators for all weights of lambs are close to pushing past 800 cents per kilogram carcass weight following the rare scenario of a big price jump in October.

Figures from the National Livestock Reporting Service show all classes of crossbred sucker lambs gained between 50c and 65c/kg in the past week.

In dollar per head terms most saleyards have reported gains of $10 to $30 in the past five days, led by some very strong markets in NSW.

This rise in prices led to a much bigger yarding of 36,000 lambs at Bendigo on Monday. However with a public holiday in NSW cancelling regular markets in that state, the focus was on Bendigo and a full field of buyers operated.

On paper the sale was $12 to $20 dearer than a week ago, but in reality the price rise only lifted the market to the higher price points recorded last Thursday and Friday. The heaviest sucker lambs above 28kg cwt made from $235 to a top of $259 at Bendigo. This is on par with Ouyen and Swan Hill late last week where the heaviest suckers also sold to $259 for pens estimated around 32kg cwt.

The bulk of the good sucker lambs are making from $180 to $220, with this range covering the best trade and heavy trades sized from around 22kg to 27kg cwt. In carcass price terms the best bred suckers at southern sales are being quoted at 780c to 830c/kg cwt, with premiums for really sweet domestic lambs of up to 890c/kg.

However there appears to be a broader carcass price spread developing as the spring flush brings out some plainer lambs bred out of Merino ewes that lack carcass shape and fat cover.

It was evident at Bendigo this week, and agents did acknowledge to The Weekly Times that price was drawing out some lambs that were at the point of needing to be shorn.

The NLRS report for the sale does show some price variances between second-cross and first-cross lambs.

Supply has been the main topic of conversation at saleyards, particularly the likely impact of the predicted heavy rain this week.

NSW has had very strong sales, and NLRS figures show that state is now leading price averages for lamb.

The mutton market also continues to trade off limited supplies, with numbers remaining low despite higher prices. Good mutton continues to track between 550c and 600c/kg cwt, and with the extra weight in ewes due to the season, a lot of heavy sheep are making from $170 to $230 per head.

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