National price indicator under benchmark

A processing backlog meant most big buyers did not operate at many prime markets this week. See what that means for prices.

Behind the scenes: Producers who paid high for store lambs have been keen to lock into any available forward contract deals.

LAMB prices have been dragged down by an autumn wave of selling that has abattoir space booked out, allowing processors to wind back bidding at saleyards.

The national price indicator for heavy lambs slid under the benchmark rate of 800c/kg, closing at 797c/kg earlier this week, according to NLRS data.

The physical market for trade and export lambs is now tracking 130c to 160c shy of where it was same time last year, equivalent to nearly $40 less on a 26kg lamb.

Companies such as Coles, Thomas Foods International and JBS Swift did not operate at many major prime markets in the past fortnight.

The Weekly Times understands Coles did not attend the Bendigo sale earlier this week, while TFI is believed to have temporarily halted its spot price offers for lambs direct due to a backlog of numbers to process.

Farmers intent on preparing paddocks for sowing are pushing lambs off stubbles across Victoria, NSW and South Australia, while deeper into southern areas stock are being sold off diminishing summer crops.

The latest saleyard figures highlight the build-up in supply.

In Victoria during the first week of March there was an extra 20,000 lambs counted at NLRS monitored saleyards compared with the same time a year ago.

In NSW numbers have also been steadily building, resulting in an extra 16,000 lambs at auctions in that state last week compared with the previous seven-day reporting period.

But it is the behind the scenes selling activity that could shape the market going forward beyond Easter.

Agents said producers who had paid high for store lambs had been keen to lock into forward contract deals that were available in recent weeks.

Forward contracts between 780c for heavy exports up to 850c/kg cwt for supermarket lambs were offered with a high uptake, buyers and agents said.

Feedback is many major processors are booked up for four to six weeks.

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