Tight supply boosts lamb and mutton sales

Supply was a key driver at this week’s sales, with only limited numbers of good domestic weighted lambs being auctioned. See what they were selling for this week.

In demand: Prices for tradeweight slaughter lambs rose at prime sales this week, and the mutton indicator climbed 30c/kg to sit at 656c/kg.

THE lamb market gained momentum to post dearer carcass rates in the past week.

Good tradeweight slaughter lambs have consistently been reported above 850c/kg carcass weight at recent sales, with some saleyards covered by the National Reporting Service recording averages near 900c/kg.

Supply was a key driver, with only limited numbers of good domestic weighted lambs coming through the auction system compared with heavier lambs above 27kg, which are available in greater volumes.

It is reflected in price patterns, with nicely sized domestic lambs now selling at decent premiums to the extra heavy exports that tip the scales above 30kg.

At Corowa in southern NSW on Monday the NLRS reported an average of 925c/kg for domestic lambs in the 22-24kg band, for a dollar per head average of $218.

In contrast, the 30kg-plus lambs were estimated at 762c/kg at an average of $253.

Looking at the bigger picture, overall, saleyard price averages for lambs have improved to sit at 853c/kg, with this rate reflecting the broad spread of 800c/kg to 900c/kg for stock depending on breed, finish and quality.

Buyers favoured lambs in shorter skins, and are still penalising rougher presented lambs in dry wool at many saleyards, showing caution towards stock that may not perform as anticipated.

In dollar per head terms the heaviest export lambs are mostly making from $240 to $270, with just odd pens higher.

With the improvement in carcass price for tradeweight stock, a lot of good lambs exceeding 23kg cwt are now commanding from $200 to $230.

Lighter and plainer lambs showing reasonable breeding and frame sold from $150 to $175.

Merino lambs have been reported making similar carcass money to crossbreds, with buyers favouring their higher value skins. Many Merino lambs also fit nicely into ­domestic weighted orders. On the supply front, the latest slaughter data shows lamb production below last year’s levels, but still reasonable at just under 295,000 across the eastern states.

Sheep slaughter remains low as flock numbers are rebuilt, with the latest weekly slaughter pegged at 108,510 or 17 per cent below a year ago.

Sheep prices also rose above 650c/kg as supplies run tight and a couple of export companies push for numbers.

At the close of selling earlier this week the national mutton indicator was at 656c/kg, up 30c in the past week and now only 25c behind the rate last year before COVID-19 hit.

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