Lamb prices take a hit, down $20-$30 today

Lamb producers are reeling from daily price cuts as another $20-$30 was chopped off prices today and rates fell to less than 200c/kg.

The lamb market took another $20-$30 price hit at a major southern Australian saleyard today as producers continue to offload numbers.

Fears that prices could drop even further have kept numbers high despite week-on-week drops for all grades of lambs.

At Wagga Wagga saleyards today, the National Livestock Reporting Service said there were an extra 2000 lambs offered, bring the sale number to 45,000.

NLRS reporter Leann Dax said the sale started $20-$30 cheaper, and when it found a new lower level competition was solid.

“Trade competition rallied when prices remained under 550c/carcass weight,” Ms Dax said.

She said most of the heavy export lambs were $20-$30 cheaper, which meant those weighing 26-30kg sold for $140-$183. Even heavier lambs over 30kg carcass weight averaged just 546c/kg.

In the analysis of prices the NLRS found sweet spots where prices were more than 600c/kg – lambs that were the tops in their categories for 22-24kg, 24-26kg and 26-30kg.

But there were plenty of sales less than 550c/kg and even under 500c/kg, taking rates down to levels not seen for years.

Today’s results reflect the ongoing pain for the lamb industry with all eastern states indicators closing below 600c/kg carcass weight yesterday.

The eastern states heavy lamb indicator finished at 599c/kg and the trade lamb indicator closed at 511c/kg. All other indicators were below 500c/kg with light lambs at 427c/kg, Merino lambs at 471c/kg, restocker lambs at 434c/kg while the mutton indicator closed at 387c/kg.

The news is even worse in Western Australia, where the restocker lamb indicator has dropped below 200c/kg carcass weight to just 183c/kg; the trade lamb indicator to 394c/kg and the Merino lamb indicator to 229c/kg carcass weight.