Supplies tightened to halt price plunge

Lower returns, wet weather prompt big cuts in saleyard numbers to stop lamb prices falling further.

Taking action: A drastic cut to saleyard numbers has halted the downward spiral of lamb prices.

A DRASTIC cut to saleyard numbers has halted the downward price spiral for lamb, with some saleyards seeing a recent $10 to $20 boost.

The lower returns of the past fortnight, combined with more wet weather, led to much smaller yardings at major centres in the past week.

At its most extreme was an offering of just 2210 lambs and 450 sheep at Bendigo earlier this week, believed to be the smallest sale held since the centre moved to the Ascot site.

Some agents said they couldn’t recall such a small offering, with Bendigo usually trending above 10,000 even in winter.

Other sales to record big cuts were Ouyen and Swan Hill late last week with fewer than 3000 each, while the country’s biggest lamb market at Wagga Wagga dropped to 13,000 last Thursday (10,000 fewer than the previous week).

The tighter supplies have managed to put some upward momentum back into the auction system. The National Livestock Reporting Service quoted prices as $10 to $20 a head dearer at Bendigo, with the best tradeweight lambs up to $25 higher this week.

Stronger prices were also recorded at Corowa and Dubbo in NSW on the same day. As a result the average price for a tradeweight lamb lifted to 787c/kg carcass earlier this week, although NLRS reports show most of the better type lambs sized 20-24kg made more than 800c/kg in early trading this week.

The price lift for heavy lambs (24kg-plus) was more modest, with extra heavy lambs over 28kg still struggling for competition.

Major exporters such as TFI, Fletchers and JBS were either limited or inactive at major markets earlier this week.

The national average for heavy lambs closed at 738c/kg carcass – up just 6c/kg.

The latest slaughter figures suggest processors are still receiving good supplies of lambs direct. During the first week of July there were nearly 277,000 processed, up 1 per cent on late June figures and just 7 per cent lower than a year ago.

Agents were still divided over whether the current drop in old lamb supply is evidence numbers have run out, or if farmers are still holding stock in the hopes of a better price outcome.

New-season lambs are starting to appear in parts of NSW. Forbes had 3000 late last week.

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