Decent rain would put the lamb market ‘in the driver’s seat’

Lamb markets face “volatile” trading conditions as processors chase with weight, while restockers search for new-season lambs.

Restocker and Merino lamb categories are in strong demand as producers wait to see what the season will bring.

And while the big headline cents-a-kilogram prices seem to have eased for now, lamb and sheep prices have been somewhat erratic in the past week.

According to Meat and Livestock Australia market information analyst Emily Tan the lamb market strengthened last week and all of the indicators were trading above $10/kg.

However, after sales on Monday most indicators had fallen again, except for the restocker lamb indicator which was up 18c/kg on Monday to sit at 1099c/kg carcass weight – a huge 460c/kg higher than the same time last year.

The trade lamb indicator fell 35c/kg to sit at 1147c/kg, while the heavy lamb indicator was up 2c/kg to 1160c/kg.

Nutrien Bendigo livestock agent Nick Byrne said Bendigo’s Monday market was “volatile” with a wintry yarding.

“There was less than what we anticipated, and 10,000 lambs in the second week of spring is historically very low,” he said.

“Of that there were about 3000 new-season lambs, and half of them were trade weight or better.”

He said processors sought “anything” with fat cover regardless of weight, while restockers and feeders chased younger lambs.

“If we were to get another substantial rain in the next fortnight, it puts us in the driver’s seat,” Mr Byrne said.

“Up until four weeks ago feed was short and non-existent, and it’s really started to progress now.”

Restocker and Merino lambs are in demand this week. Picture: Zoe Phillips

Corcoran Parker livestock manager Clynton Rixon from Corowa, NSW, said on Monday prices were softer for the better quality lambs, but Merino lambs were dearer.

“I think it is because of the way the season is at the moment, it is shaping up well without being exceptional,” Mr Rixon said.

He said bigger numbers of larger lines of Riverina lambs were starting to come into sales and that is what was attracting buyers.

“There’s a long way to go, but with what we have been getting the season isn’t going too badly in this area, but if we get the rain this week, it will be even better.”

Meanwhile, most cattle prices also took a hit on Monday with most of the indicators falling.

However, the Eastern Young Cattle Indicator is moving steadily toward $10/kg, rising 23c/kg in a week to sit at 914c/kg carcass weight on Tuesday.

The feeder steer indicator also posted a positive result, up 16c/kg in a week to 490c/kg liveweight.