Lamb prices: Low supply leads to big prices

Sucker lambs are selling for historical premiums, but will it last?

NEW season lambs have been selling for historically high prices this spring.

But prices are fluctuating week-to-week and saleyard-to-saleyard due to the challenging weather, as well as supply and demand.

According to Meat and Livestock Australia new-season lambs are selling for a historical premium, with last week’s average 11 per cent, or $19, higher than the five year average at $191 a head.

MLA senior market information analyst Ripley Atkinson said a lot of the high prices could be attributed to low supply.

“Sucker lamb supply is low compared to the five year average, which of course leads to increased demand,” Mr Atkinson said.

The latest figures show last week the number of new-season lambs through saleyards was down 12.2 per cent compared to the five year average.

Last week there were 28,257 new-season lambs yarded across all National Livestock Reporting Service monitored saleyards and compared to the corresponding week last year, numbers were down 50 per cent.

Although fewer lambs have been sold so far, lambing percentages were higher this year, so there are big numbers yet to be sold, which could affect prices going forward.

Mr Atkinson said buyers were also chasing a heavier finished lamb, which were in low supply, due to wetter and cooler conditions during winter making on-farm weight gain slower.

“Producers haven’t been able to grow their lambs out as quickly as they usually expect.”

The weather challenges has also meant there was still a large supply of old-season lambs being sold at some saleyards, which is leading to higher demand for the better quality suckers.

At Bendigo on Monday the NLRS said extra heavy new season lambs sold to a top of $270, while most of the medium to heavy trade suckers made 800-850c/kg carcass weight, making it one of the strongest young lamb sales at the centre this month.

However, further north at Dubbo on Monday trade weight sucker lambs were $12-$15 cheaper.

Nutrien livestock agent Nick Byrne from Bendigo said prices on Monday were $15 to $20 dearer for suckers, with both major supermarkets actively buying.

“We were concerned given the two public holidays this week that there wouldn’t be much demand, but the weather played a part because a lot of lambs couldn’t get to the sale,” Mr Byrne said.

While he said there were still a lot of lambs to be sold, he wasn’t expecting prices to drop too dramatically.

“It is fluctuating every week and I seem to change my mind every few hours.”