Lamb prices hit $295 as market hits unusual highs

Rates of $295 aren’t the norm for late spring, but that’s exactly what was paid this week for one lamb category. So what’s driving the market?

Unheard of prices are rewarding sheep producers who have defied the season to produce big lambs this spring.

Heavy lambs hit $295 at Wagga Wagga on Thursday in a market that was dearer than last week, as the fight to secure the best stock pushes up rates.

And such is the turnaround in confidence that restockers are taking a gamble to buy unfinished lambs to put back in the paddock to sell later.

The national heavy lamb indicator is sitting at 861c/kg carcass weight after this week’s sales, 359c/kg or more than 70 per cent higher than this time last year.

The trade lamb indicator is tracking at 813c/kg after sales including Wagga Wagga, 326c/kg higher than last year, a rise of 60 per cent on 12 months ago.

Nutrien Wagga Wagga agent Peter Croker said any lambs with finish and weight were being well rewarded.

“Normally we are at the cheapest time of the year but there is just not an abundance of killable stock around,” Mr Croker said.

He said lambs with weight and finish at Wagga Wagga on Thursday were noticeably dearer, up by $10-$12.

“Most lambs, with carcass weights of 28kg or more and well finished were making well over 800c/kg (carcass weight),” Mr Croker said.

He said Wagga Wagga normally sourced a lot of lambs from the NSW southern tablelands at this time of year and while drafts were coming, there were not the usual numbers of heavy lambs.

The flip side of high prices in November was a lift in restocker competition, sparked by confidence that was robbed from the industry last spring, where heavy lambs were making as little as 500c/kg carcass weight.

“We can see that a lot of lambs are being recycled (going back into the paddock) and there is definitely more restocker competition than last year,” Mr Crocker said.

National Livestock Reporting Service reporter Caroline Ronald said restockers paid between $91-$134 for better lambs to turn out.

And in a boon for sheep producers, mutton prices are also on the rise.

The national mutton indicator jumped 40c/kg carcass weight in the past week, closing at 363c/kg, 42 per cent higher than a year ago.

Mr Croker said there had been bidding duels for big heavy sheep at Wagga Wagga this week, going up to $170 for big crossbred ewes with better Merinos making $135-155.

“There was a $20 increase on heavy sheep and a lot were making 350-400c/kg carcass weight, so it was a pretty good day all round,” he said.