Lamb prices hit 900c/kg as processors scramble in new year

There was good news for sheep producers this week as lamb prices jumped dramatically at Corowa. See results around the state.

New year’s lamb prices have delivered welcome good news for sheep producers as rates hit up to 900c/kg carcass weight early this week.

All national indicators have gained 129-239c/kg carcass weight since sales resumed at the start of the year with the biggest rise for light lambs which closed at 729c/kg carcass weight early this week.

Prices jumped dramatically at Corowa, NSW, on Monday where 15,000 lambs sold above 800c/kg carcass weight at times and even up to 900c/kg for isolated sales.

Nutrien Corowa agent Richard Wynne said this week’s sale at the centre was a one-off as a number of factors created a big price rise.

“We had a couple of extra buyers because they couldn’t get to other sales because of the rain, we had plenty of lambs in and processors I think were worried numbers would be down at Ballarat sale this week,” Mr Wynne said.

“It meant that results touched on 900c/kg at times and while those kind of rates are not going to last, I would think we will be 750c/kg (carcass weight price) and maybe up closer to 800c/kg at times from now on.”

Mr Wynne said one client sold 1200 store lambs and averaged $120 and made up to $150. In November, he said the same lambs would have made $70-$80.

Bendigo’s market was up to $35 dearer on Monday, as rain only added to the price spike as fewer numbers could be trucked to the sale.

Heavy lambs sold to $254 and export grades returned 770-828c/kg carcass weight, while it was similar for trade lambs which came back at 780-810c/kg.

Prices rises were also evident at Wagga Wagga last week with Nutrien agent Jarrod Slattery quoting big lifts in the lamb market at the major centre’s first offering.

“Wagga had 26,000 lambs and the market was $30 dearer to what seen prior to Christmas in our first sale for 2024, and could have even been higher than that at times,” Mr Slattery said.

Mecardo markets insights lead Olivia Agar said while it was early in the new year selling season and only a few sales had been held, the “change in appetite from processors at the end of last year is a promising sign that we’ve seen the worst of the lamb market”.

“Since the middle of December, lamb prices and demand increased by $1/kg from processors and now the opening sales of January have seen another $1/kg increase,” Ms Agar said.

“We knew lamb supply was going to be tighter early in 2024 because of the higher numbers of light lambs already slaughtered.

“So now, the supply isn’t there and demand is back, which is very positive for price.”