Benchmark lamb indicators soar

Climbing lamb and mutton prices are giving livestock producers a much-needed dose of enthusiasm. See how values have increased this week.

Lamb indicators are heading in an upward trajectory as higher saleyard prices show the metrics of supply and demand.

On Wednesday morning the national heavy lamb indicator was tracking at 839.15c/kg, 66.46c/kg higher than this time last week and 287.31c/kg higher than this time last year.

The trade lamb indicator hit 832.01c/kg, an increase of 59.16c/kg in comparison to this time last week and an increase of 265.29c/kg on this time last year.

Early markets this week, including Corowa and Bendigo, caused the trade lamb indicator to push the 800c/kg ceiling in NSW and Victoria.

NSW is leading the higher prices with a state indicator for trade lambs of 837.80c/kg and the benchmark indicator for Victoria was 829.62 on Wednesday. At the Wagga Wagga sheep and lamb sale last Thursday prices averaged 844.13c/kg for heavy lambs.

Vendors will now watch and wait to see what results are in store at the southern NSW sale tomorrow.

Values at Forbes, also in NSW, for heavy lambs were higher at 848.41c/kg.

The prices show a stark contrast from when the indicator plummeted to 411c/kg in spring last year.

Livestock agents take the bids at the Corowa market.

Riverina Livestock Agents director Tim Drum said he could see the indicator reaching more than 850c/kg by spring.

Mr Drum said supply and demand metrics were at play. Also, the demand for MK bag lambs meant fewer store lambs were heading back to the paddock for finishing.

“There is a lack of supply for good lambs in Victoria and anywhere south of Wagga Wagga,” he said.

“It is a tough season in much of Victoria, and that correlates to the fact there are not a lot of fat ones around,” he said.

Mr Drum also tips that the general run of sucker lambs will likely hit the market later than normal this year due to the seasonal conditions.

Nutrien Bendigo livestock agent Nick Byrne said prices across the board were at least $10-$20 dearer at Bendigo’s prime market on Monday.

“It was the dearest market we’ve seen for quite some time,” Mr Byrne said.

“I have no doubt it is a simple supply and demand situation driving up the prices.”

“Lambs (sold on Monday) were making $100 more than they would have 10 weeks ago.”

However, Mr Byrne said the biggest uplift at Monday’s sale was trade mutton, as all processors were active on those lines.

New-season lambs would be “slow at best” in the central Victoria region.

“I don’t see us having a significant numbers of good sucker lambs before September, it could even be October, depending on the season.”

Meat and Livestock Australia’s sheep industry projections, released earlier this year, forecast the indicator for heavy lambs would average 763c/kg by June.

The national heavy lamb indicator surged to 839.15c/kg on Wednesday surpassing projections and showing a rise of 66.46c/kg in a week and an improvement of 287.31c/kg compared to this time last year.

Albury livestock agent David Hill said the heavy lamb market overall was $20 dearer at Corowa and numbers dictated the prices.

Mr Hill said the prices would likely continue an upward trajectory until new-season sucker lambs entered the market.