Lamb spiral an ominous sign for coming spring
With the start to spring weeks away, prices for old season lambs continue to slide regardless of weight, offering no comfort for the new season.
THE lamb and sheep market is still struggling to find a price floor heading into spring, with weekend rain having a mild impact on supply and demand.
The price trend in the past seven days has been constantly cheaper regardless of weight and quality, with the first batches of new season lambs also caught up in weaker results.
The latest saleyard data compiled by the National Livestock Reporting Service shows the downward spiral that has hit the market this winter.
On Monday night the national heavy lamb (22kg plus) price indicator was listed at 633c/kg, 5c/kg weaker than last Friday, 56c/kg lower than a week ago, 105c/kg down on a month ago, and 254c/kg shy of the high winter rates of a year prior.
The tradeweight lamb indicator closed at 695c/kg, 10c/kg down on last Friday, 79c/kg lower than a week ago, 94c/kg back on a month ago, and 179c/kg behind the rate of last year.
To focus on recent trends, a 56c/kg price correction in the past week for a heavy lamb weighing 28kg equals a cut of $16, while a 79c/kg fall on a 22kg trade lamb was equivalent to $17.
At Bendigo earlier this week, the heaviest old season lambs fared a little better, thanks to more export competition from NSW based exporter Fletchers at Dubbo plus the return of ALC after its COVID-19 outbreak, with Thomas Foods International from South Australia also back purchasing.
There was, however, no JBS Swift buyer in attendance amid reports it still has workforce issues due to coronavirus infections.
The NLRS quoted big 30kg plus cwt lambs at Bendigo as selling from $170 to a top of $196 — a $5 rise — and working out to between 500c-550c/kg cwt.
However, competition for medium and heavy tradeweight (22-27kg) old season lambs fell away as the main domestic buyers, including supermarkets, start focusing on sucker lambs.
The tradeweight old season lambs at Bendigo were quoted as $5 to $15 easier at Bendigo, fluctuating from 500c-600c/kg depending on weight, breed type and quality.
But with the official start to spring now just weeks away and following a superb early autumn break, sucker lamb turn-off is starting in earnest.
Around half the 9000 lamb yarding at Bendigo were suckers, and decent numbers have now started to appear in the NSW centres of Deniliquin, Corowa, Forbes, Griffiths, Wagga Wagga and Dubbo.
And those sucker lambs presented with plenty of weight and condition, the majority weighing between 22kg to 28kg. Early price results for sucker lambs show a very compressed price range of $150 to $175 regardless of weight.
At Bendigo the heaviest pen of suckers, estimated at 29kg, made $168 while the neater tradeweights went higher to $172.
In carcass price terms it meant the heaviest suckers worked out around 600c/kg, with rates improving to between 650c-700c/kg for the neater tradeweights.
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