Lamb prices rise— for the first time this year

Heavy lamb prices have moved north in the past week gaining almost 30c/kg after a period of price free fall. See what it means for vendors.

Lamb prices have all moved north in the past week - for the first time this year.

Producers are hoping the upward trajectory of the lamb and mutton indicators will continue into the winter months to come into line with rising costs of production.

After a period of free fall the heavy lamb indicator has turned around in the past week to gain 29c/kg to settle at 814c/kg on Monday evening.

The trade lamb indicator also increased by 25c/kg in a week and is at 787c/kg and mutton was also up 26c/kg.

But producers say the better prices need to continue to make finishing lambs viable before the cooler weather arrives.

Specialist lamb producer Robert Sheridan of Junee in southern NSW finishes lambs all year round and said the lamb market may have kicked by $10 in the past week, but it was still tough to make money.

“We are not making a fortune out of it,” he said.

Mr Sheridan sold lambs weighing an estimated 38-kilograms dressed weight at the Wagga

Buyers line the rails at the Bendigo market. Picture: Zoe Phillips

Wagga Livestock Marketing Centre in NSW on Thursday for $298.

“It was $2 short of what I wanted, but it could have been worse,” he said.

“I think we will see the prices get dearer again in May and June.

“We are feeding everything at the moment, and it is fairly dry; if you haven’t been under a storm, stock water could be a problem too.”

Meat and Livestock Australia analyst Erin Lukey said the past week had recorded the “first upward movements of all the lamb indicators, all year”.

She said it appeared processors were keen to source heavy lambs to fill their books, and the lighter lines followed the trend.

More heavy lambs were now being turned off in the new year, whereas traditionally, they would be sold pre-Christmas.

Ms Lukey said demand from processors, which had increased capacity, was strong.

Nutrien livestock agent Richard Wynne of Corowa, NSW, said he anticipated seeing dearer prices for the extra heavy lambs sooner rather than later.

However, he said the Monday sale was “no real game changer,” and was in line with last week’s prices.

A total of 14,760 sheep and lambs were sold and the best of the extra heavy lambs made $260.

“The quality was a little better than last week,” he said.

Trade lamb prices at Corowa lifted by $12 to make $140 to $182 and heavy trade lambs ranged from $174 to $223.