Values dropping as lambs lose value by the week

There has been little joy at markets for lamb producers despite prices stabilising recently.

Lamb producers are continuing to push lambs into saleyard despite carcass weight prices slipping below 600c/kg.

While rates settled early this week at a new lower level at Bendigo and Corowa, NSW, many drafts of lambs are still failing to break the 600c/kg mark, well below the 800c/kg seen this time a year ago.

Paull and Scollard Nutrien auctioneer Tim Robinson said some producers were forced to sell lambs despite the week-on-week prices falls due to concerns they would cut their teeth.

“With a crossbred lamb, you have to sell before they cut their teeth because there really isn’t a plan B,” Mr Robinson said.

“The gap now between lamb prices and hoggets is pretty significant, so it is a matter of producers having to sell even as prices come back – they just can’t hold.”

Elders Victoria Riverina livestock manager Matt Tinkler said there was “not a lot of joy in the lamb market at the moment”.

“There will be some who have been able to make a margin out of finishing lambs this year, but the margins will be smaller than what we have seen,” Mr Tinkler said.

Mr Tinkler said there were signs of better times ahead, with indications 700c/kg could be given for sucker lambs in August.

But the carry-over of old lambs could affect young lamb prices, overshadowing some of the premium usually seen for suckers.

Barnarwartha lamb producer Allan Coyle said he was gravely concerned about what might happen to lamb prices this spring.

“Two years ago, we managed to get $230 for about 700 suckers and last year it was $200, but who knows what it will be this year,” Mr Coyle said.

“We have got ewes lambing at the moment so it won’t be until September until those lambs are ready and it certainly has us worried.”

Meanwhile, southern Australia’s biggest lamb market – Wagga Wagga, NSW – took another $20-$30 price hit as producers continued to offload numbers.

National Livestock Reporting Service reporter Leann Dax said the Wagga Wagga 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 but there were plenty of sales less than 550c/kg and even under 500c/kg, taking rates down to levels not seen for years.