Lamb prices hold as market firms up
The saleyard price average for heavy and tradeweight lambs is performing nearly 90c better than last January, bringing it to an historical high price point for this time of year.
LAMB prices are holding as the market undergoes a tussle between supply and demand.
The outcome for sheep hasn’t been as rosy, with prices for heavy mutton retreating by $10 to $25 at recent sales as exporters step back from the market as the firming Australian dollar puts more pressure on processor margins.
There were reports of erratic results for lamb earlier this week as buyers tried to pull back prices but were hindered by suitable numbers and quality, particularly across the tradeweight sections.
At Bendigo earlier this week, lamb prices opened cheaper before gaining momentum as the auction progressed.
The NLRS said by the end of the sale lambs were selling $10 to $15 dearer than how they had started the day.
The overall result was a firm to dearer trend across the best heavy lambs.
The saleyard price average for heavy and tradeweight lambs is performing between 820c/kg and 830c/kg, nearly 90c better than last January and at a historical high price point for this time of year.
The latest slaughter figures confirmed the tight supply of stock.
During the first trading week of January there were 287,167 lambs processed in the eastern states, which is 20 per cent lower than 12 months ago.
The cut to mutton supply has been more dramatic, with sheep slaughter starting the year at a weekly total of 83,561 head to be down 45 per cent on early January last year.
However, the mutton market has cheapened at southern saleyards.
Price falls started at centres like Hamilton in the Western District late last week where 20,000 sheep sold at rates $15 to $25 cheaper.
And the trend continued at Bendigo earlier this week.
At those centres the general lines of ewe mutton were being quoted at 550c/kg to 580c/kg. Good lines of Merino weathers are still tracking over 600c/kg.
In dollar per head terms only a few pens of extra heavy crossbred ewes managed to sell above $200 at Bendigo, reaching a top of $220.
Most heavy sheep sold from $170 to $195, the general run of medium sized sheep from $130 to $165.
In the lamb market, there is plenty of weight evident in the shorn lambs now being sold.
The NLRS said most of the shorn lambs at Bendigo weighed 26kg cwt and better, going into the high 30kg weight range.
Shorn lambs sold to $277, although there were only half a dozen pens over $270.
Most heavy lambs sold from $210 to $250.
Buoyed by the strong performance of the lamb market, small store lambs have also picked up in value in both saleyards and on internet selling platforms.
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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.
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Bidding remained erratic over the past week, with lamb weight and quality both factors in price outcomes.