Lamb prices lifting as abattoirs scramble for numbers in floods

Flooding and wet conditions are forcing abattoirs to look to saleyards to secure lamb numbers — and prices are responding.

The big wet is having an unexpected upside for lamb prices, which are surging in the saleyards.

A massive 72,000 sheep and lambs were sold at Wagga Wagga yesterday, including 55,000 lambs, yet prices were up to $10 higher.

Some industry observers believe the flooding and wet weather has made it too difficult for some direct consignments of lambs to get to abattoirs, forcing abattoirs to operate strongly at saleyards.

Nutrien Bendigo livestock manager Nick Byrne said it was impossible to know how many lambs would be yarded at Bendigo next Monday given the 100mm rainfall event in the drawing area for the yards.

“We had 27,000 sheep and lambs at Bendigo last Monday which was the biggest yarding we have had for a while, because of the logistics of trying to get lambs into the yards,” Mr Byrne said.

“Now with this extra rain, it will be extremely difficult.”

Mr Byrne said producers may have had lambs booked to send direct to abattoirs but muddy conditions created hygiene issues for abattoirs.

“We’ve got clients ready to sell lambs but their properties are waterlogged and their own yards are muddy and it’s just not possible,” he said.

“There are issues all the way along the supply chain for lamb and those who can get their lambs to the yards, the buyers are needing to buy them.

“It is pushing the supply of lambs back and it means numbers are going to snowball later in spring – you’d have to think it is going to be a big mess later on.”

National Livestock Reporting Service reporter Leann Dax said numbers had surged on the back of higher prices the week before, but the fact those lambs were there for buyers to bid on meant prices rose.

“The limited availability of good young domestic and export lambs at other selling centres showed up in prices here,” Ms Dax said.

“All buyers were at the market and operating strongly.”

Ms Dax said lambs in the 24-26kg range averaged 832c/kg while extra heavy lambs averaged 794c/kg.

And it seems the rain has injected confidence into the market with the eastern states indicator for restocking lambs jumping 50c/kg yesterday to close at 806c/kg, and has risen 86c/kg in the past month.

Heavy lamb prices have also lifted, up 23c/kg in the past week and light lambs lifted 23c/kg yesterday but are 120c/kg higher than levels seen a month ago.