Optimism for red meat demand despite early price drift
Lamb prices soften with Melbourne Cup public holiday disrupting trading trends, but warmer weather and the easing of COVID rules are expected to step up demand.
SOFTER price trends were evident for lamb and mutton on Monday as the market stepped into November.
The run into Christmas is usually a danger period for markets as southern saleyard supplies build, although meat buyers were only able to carve a few dollars off lamb values in early trading this week.
The Melbourne Cup public holiday also disrupted trading patterns, with southern processors not working a full week.
On a positive note, feedback from a meat wholesaler suggests the warmer weather and easing of COVID-19 restrictions in metropolitan Melbourne is having a positive influence on red meat demand.
Bendigo had the biggest yarding of the major markets on Monday, yarding 17,500 lambs. The overall price quote by the National Livestock Reporting Service was $2 to $5/head easier across all weights. However, there were hot spots in the market, with exporter ALC pushing hard for numbers at times, which created some firm to dearer price results for heavy sucker lambs.
The heaviest suckers over 30kg sold from $230 to a top of $256 at Bendigo, however there were only about a dozen sales at this level. The main run of crossbred suckers in the 26-30kg cwt range sold from $204 to $244 to average an estimated 760c/kg cwt, the NLRS reported.
Good tradeweight lambs mostly $175 to $195.
The overall trend for processing lambs at Bendigo was 740c-780c/kg cwt.
That was slightly below the national saleyard indicators of 778c/kg for heavy lambs (22kg plus), and 795c/kg for tradeweights.
But a breakdown of the figures shows stronger lamb sales in NSW are helping buoy overall saleyard results.
The NLRS has heavy lambs in NSW tracking at 789c/kg and trade lambs at 809c/kg lwt.
Lamb prices were quoted as easier out of Dubbo earlier this week, however on a carcass value they were still ahead of Victorian saleyard rates.
As an example, the 24-26kg sucker lambs were quoted at an average of 806c/kg at Dubbo this week. Continued rain across NSW, and smaller supply in that state, are seen as the key drivers for holding price levels higher in the north.
After a significant price rally in late October, mutton prices retreated earlier this week as buyers tried to bring the market back under 600c/kg cwt.
Bidding for sheep was described as “erratic’’ at Bendigo, with early sales back by up to $20 for some heavy sheep before the sale settled to close $5-$10 easier over the main runs.
The quote for good mutton at Bendigo was 580c-610c/kg.
The national saleyard indicator for mutton was 650c/kg, again influenced by some high rates quoted out of NSW.
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Competition for lamb was also strong, with prices creeping up slowly instead of steep increases, with agents reporting more consistent demand from processors early this week.
Sale prices, yards adapt around heat, holidays
Bidding remained erratic over the past week, with lamb weight and quality both factors in price outcomes.