Prices recover on the back of smaller yardings, more buying

Improved rates end downward spiral, but there is concern that as sucker numbers build again the market could be pressured once more.

Welcome change: At Bendigo, new season lambs sold to a top of $190 for a pen estimated to have a carcass weight of 30kg cwt. Picture: Dannika Bonser

THE lamb and sheep market recorded a welcome price bounce of up to $20 on Monday.

Influenced by wet weather and smaller yardings, the price increase was evident at the major saleyards of Bendigo plus Corowa and Dubbo in NSW.

It ends the downward spiral that has hit the market this winter. However, while agents are hopeful it marks a turnaround there is also concern that as sucker numbers build again the market could be pressured once more.

There were just 12,700 lambs at Bendigo earlier this week, for a decline of nearly 3000 on a week ago. Likewise at Corowa numbers dropped by similar volumes to 8800 head, and at Dubbo to 8600.

Along with the smaller supplies there was more buying activity from supermarkets and exporter such as Australian Lamb Company and Thomas Foods International, which had been very quiet in recent weeks.

Agents told The Weekly Times the backlog of contracted lambs was now starting to be cleared, which was helping put more competition back into the physical market.

In Victoria, northern-based exporter Fletchers had a strong impact on heavy lambs and sheep in early trading this week. Sucker lambs are now dominating saleyard supplies, although most centres are still yarding some good old season shorn lambs off grain.

At Bendigo new season lambs sold to a top of $190 for a pen estimated to have a carcass weight of 30kg cwt. The NLRS said the dearer price trend pushed the bulk of the medium and heavy lambs (23-28kg cwt) into a range of $160 to $175 per head – up around $10 to $15 on a week ago.

Extra heavy old season lambs topped the market at $210, with competition a lot stronger across this stock that has been heavily discounted in the past few weeks. At Corowa heavy suckers sold to $169, with most sales of the lead runs from $150 to $165 to be just a few dollars firmer.

On a carcass calculation, most young lambs are being quoted in a range of 600c to 680c/kg cwt, with premiums over 700c/kg being paid for sweet domestic types under 21kg due to few being available.

The stronger results on Monday pushed the saleyard indicator for heavy lambs back to 600c/kg cwt, noting the average includes old season stock.

National price for tradeweight lambs was at 637c, and lightweight lambs for processing at 657c/kg cwt.

The mutton market was $10 to $20 dearer, with sales 520c-600c/kg reported on Monday.

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