Solid lamb price gains as market lifts

Major saleyards recorded good gains this week, pushing prices up and leading a solid market recovery.

On the rise: Lamb prices continued to rise at major saleyards on Monday as processors struggle for supplies. Picture: ZOE PHILLIPS

LAMB prices have strengthened and will head into October on a rising plane as the market continues to surprise this spring.

Price gains of $10 to $25 per head were recorded at major saleyards on Monday, pushing the sweetest domestic lambs closer to 800 cents per kilogram carcass weight and heavy lambs well over 700c.

Figures from the National Livestock Reporting Service show price rates for slaughter lambs have improved by an average of 75c/kg in the past month, helping the market recover from its winter meltdown.

Feedback suggests processors are finding it difficult to secure supplies, with less lambs forward sold on contracts and over-the-hooks which has intensified competition at saleyards.

The latest available slaughter figures show a slight contraction in kill numbers for the week ending September 18.

The number was 337,233 head, down 3pc on the previous seven days and marginally lower than a year ago.

There was a full field of export, supermarket and domestic buyers at Bendigo plus the NSW markets of Corowa and Dubbo on Monday.

Also starting to pressure the market is restockers, with Ballarat agents paying to $199 for tradeweight lambs to shear out of the Bendigo market.

At the close of selling on Monday night the national saleyard average for heavy lambs (22kg plus) had lifted to 719c/kg and trade lambs to 751c/kg.

In dollar per head terms this translated to a top of $246 for extra heavy sucker lambs sold at Bendigo, and thanks to an outstanding run of young lambs with weight, there was a spate of sales above $200 per head.

The NLRS said heavy lambs between 26kg and 30kg cwt averaged around $210.

Similar results were reported out of Dubbo in NSW on the same day, where suckers sold to $230 and tracked over $200 for the heavy types.

At Corowa export weight suckers reached $224, with the heavy 26-30kg pens averaging $206 on NLRS figures.

Nice tradeweight lambs are now tracking between $160 and $190 per head, with some sales reported as high as 820c/kg in early trading this week.

Most young lambs to the paddock are costing from $120 to $150 per head for small types, with some finishers paying upwards of $175 for bigger lambs to shear.

The mutton market has surged alongside lamb, with price gains of $10 to $30 recorded on Monday, shifting some carcass results to 600c/kg cwt.

Sheep supplies continue to track at low levels as farmers begin rebuilding flocks after the drought cull. Anecdotal evidence suggests there is a lot less older 5 and 6 year-old ewes available for slaughter this spring.

A lot of heavy sheep were making from $170 to $220 at saleyards on Monday, with the lead pens of extra heavy crossbred ewes peaking at $246 at Bendigo.

The national saleyard indicator for was at 564c/kg cwt on Monday night.

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