Low demand sends prices on downward trend

Heavy old lambs bear the brunt of price falls as sucker lambs come on to the market and Victorian meatworks operate at reduced capacity.

Taking care: Buyers are looking for quality new-season lambs in a market that has fallen $5-$20 a head to 500c-680c/kg. Picture: Zoe Phillips

LAMB prices continued to slide as the market comes under growing pressure from rising sucker lamb numbers at a time of low demand and disrupted kills in Victoria.

Cheaper results were evident last week, and the downward trend marched onto the main auction sales of Bendigo, Corowa and Dubbo in NSW earlier this week.

Further falls of $5 to $20 were recorded, according to the National Livestock Reporting Service, with some outstanding new-season lambs caught up in the weakening trend.

Rates have now cascaded down to sit at 500c-680c/kg depending on lamb quality and weight, with old-season lambs selling at the lower end.

At Bendigo, a pen of extra heavy suckers estimated at 30kg topped at $180. The next best price was $166.

However, most young lambs varied from $140 to $160 regardless of weight, the NLRS reported.

The same pattern was reported across the border at Corowa, where suckers sold to $170 and price averages between the two centres were similar.

The NLRS said good tradeweight suckers from 22-24kg averaged $150 at Bendigo, compared with $153 at Corowa.

It comes as sucker numbers quickly build, with more than 8000 penned at Bendigo and 6000 at Corowa.

Agents also sold 7000 at Deniliquin earlier this week.

Market analysts from Meat and Livestock Australia said saleyard data was showing a quicker sell-off of heavier young lambs this year, thanks to the good season.

“Young lambs to processors are up substantially across NSW, Victoria and SA, among to 91,000 since July 1 according to NLRS figures,’’ MLA said.

“The trend highlights a challenging situation as supply exceeds demand, furthering the impact on saleyard and grid prices.’’

Victorian meatworks are operating at reduced capacity due to COVID-19 rules.

The JBS Swift abattoir at Brooklyn near Melbourne has closed for an undefined period.

Demand from domestic buyers is also down.

And with most buyers now focusing on the better quality young lambs, heavy old lambs are wearing the brunt of the ongoing price corrections.

A market top of $200 was recorded at Bendigo this week, but it was for big lambs with estimated carcass weight of 40kg plus, thus at less than 500c/kg.

Most big export lambs over 30kg cwt are making from $160 to $180. It resulted in the unusual trend of good Merino slaughter sheep being at a similar price to old crossbred lambs at 540c/kg at Bendigo.

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