Lambs stay hot heading into winter

Saleyards are reporting an upward trend in lamb prices with the onset of winter and low supplies.

Red label: Domestic lambs are commanding premium prices, with supply still a key driver in the market. Picture: Karolin MacGregor

LAMB prices have been on an upward trend in the past week as the industry enters winter with very low supplies.

Dearer carcass rates were reported at saleyards such as Wagga Wagga and Griffiths in NSW late last week, ahead of the Queen’s Birthday long weekend, which cancelled regular Monday markets.

Premiums were paid for any genuine domestic lambs sized from 19-22kg cwt with reports generated by the National Livestock Reporting Service showing these lambs tracking over 920c/kg, with odd sales quoted as high as $10.

In contrast, the heaviest ­export lambs are still struggling for momentum, with the major saleyards reporting averages below 800c/kg even though in dollar-per-head terms they have been making up to $320.

But a breakdown of data shows lambs making over $300 are generally super heavyweights estimated above 40kg.

There was plenty of weight coming through saleyards with the bulk of lambs being sold off grain or pellets.

At Wagga Wagga last week the main run of extra heavy crossbred lambs over 30kg sold from $257 to $310 to average $279 at an estimated 780c/kg, the NLRS said.

Then as lamb sizes come back, carcass rates rise — and this has been the trend across the auction system for the past month. The 26-30kg lambs at Wagga Wagga averaged $249 or around 850c/kg, while the next category down, of 24-26kg lambs, averaged $234 or 919c/kg.

Estimated carcass rates then kept improving across the medium and lighter domestic lambs, reaching a peak average of 952c or $210 for the 20-22kg lambs.

The rising price trends for lighter lambs is not fully reflected in the latest national price averages due to the way lamb weights are mixed together.

Late last week the tradeweight average was at 938c/kg, compared to 907c/kg for heavy lambs which take into account any good processing lambs over 22kg.

Supply was the key driver of the market, with numbers tightening after a big sell-off earlier in the season and less stock carried over due to the drought, which didn’t break until April.

The latest production figures has the Eastern States lamb kill tracking at 277,199 in the last week of May, 21 per cent lower than a year ago.

All states, from South Australia to Victoria and NSW, are all reporting much lower slaughter levels compared to 12 months ago.

The slowdown in sheep slaughter is even more extreme, dropping by nearly 40 per cent on year ago levels.

Mutton prices have also strengthened, with good lines of Merinos now tracking above 700c/kg at most major saleyards.

In dollar-per-head terms the heaviest sheep are making from $220 to $290, and leaner lighter types with decent frame and cover from $150 to $210.

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