Tug of war between supply and processors

With winter officially here, lamb prices are being buoyed by tightening supply and processor demand.

Firming up: A fall in kill production has kept the lamb market at existing rates, with heavyweight pens easing. Picture: Chloe Smith

LAMB prices are hovering between tightening supplies and mixed processor demand as the industry steps into winter.

Prices at major saleyards earlier this week were firm for the best tradeweight lambs, to a few dollars easier for heavy weights at over 27kg carcass weight.

It follows varying levels of demand from the processing sector, with some companies quiet as kill production winds back for the winter period.

At Bendigo earlier this week, NSW-based processor Fletchers did not buy any lambs. Throughout May the company had been the lead buyer of big export lambs over 30kg cwt.

Lamb prices did reach $306 at Bendigo, however it was for a pen of 24 crossbreds that were estimated at more than 42kg cwt.

The next best price was $284.

The National Livestock Reporting Service said the general run of export lambs from 30kg to 34kg sold from $240 to $265 at Bendigo.

This matches the results at Corowa in southern NSW on the same day, where the heaviest lambs sold from $244 to $278.

Further north at Dubbo, the extra-heavy lamb market was similar at $260 to $291, for an average of $270.

There was a lot of weight reported at saleyards as lambs come in off grain and pellets.

At Wagga Wagga last Thursday it was reported the bulk of the lambs in the 28,000 yarding weighed more than 30kg cwt.

The price range for those lambs was $230 to a top of $322, averaging $270, according to NLRS data.

When the big weights of lambs were calculated out, the average at Wagga Wagga was listed at 780c/kg.

This is consistent with the price range of 780c/kg to 820c/kg quoted for heavy lambs by agents and buyers in the past week.

Tradeweight lambs suiting supermarket and domestic orders are making a premium, due in part to limited numbers.

Well-finished lambs weighing from 21kg to 27kg cwt have made between $190 and $240, with a good run of 24kg lambs in short skins costing about $210 at major saleyards earlier this week.

On a carcass basis, tradeweight lambs are being quoted at 850c/kg to 900c/kg cwt, with the higher rates mostly evident for the neat 22kg style pens.

Merino lambs suiting trade orders also sold strong at $180 to $230, trending at more than 800c/kg.

Sheep numbers remained low at saleyards in the past week, with the good season and big culls earlier in the year now reflected in diminishing supplies.

Mutton price trends have been firm to $5 to $10 dearer in the past week, with an estimated 660c/kg to 730c/kg being paid for good lines of crossbreds and Merinos.

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