The past week has seen circumstances shift in favour of processors, factoring in a combination of increased supplies of new-season lambs and plainer quality drafts of old lambs.
Restocker and feedlot interest has not picked-up in northern markets and when this occurs it will help underpin lighter trade weight categories.
Mercado market analyst Angus Brown predicts lamb prices will decline when lambs start to flow in serious numbers, but should remain above last year's levels providing we have a reasonable season.
The lamb market eased in late trade last week, with new-season trade lambs most affected. Sales at Wagga Wagga, NSW, reported a softer trend, with lambs generally $7 easier but good quality light and medium trade weight new-season lambs were $10 lower and more in places.
Factors included increased supplies and weaker demand from buyers who were shying away from the middle run of young trade lambs. Buyers said young lambs the previous market weighed 1-2kg less than expected and yields were not as favourable making the market a lot dearer on paper.
Heavier new-season lambs, 24-26kg, found solid support from a major supermarket, with prices firm to $2 easier to average 596c/kg cwt.
Old lambs were being ditched by some domestic processors which resulted in values slipping $5-$7, the better drafts made from $126-$156.
The cheaper trend was more severe at Griffith for heavy new-season lambs with rates $8 lower. The better heavy lambs 24-26kg made from $165-$172. New season trade lambs lacked backing from the usual processors and prices came off $5-$10 to average 610c/kg cwt.
Heavy sheep at both Wagga and Griffith markets averaged 369-408c/kg. The main run of trade sheep averaged 306-321c/kg easing $3-$4
Bigger numbers at Ouyen gave buyers a greater selection of new-season lambs, with 6082 penned along with 8520 old lambs.
Competition was robust for heavy new season lambs with prices topping at $175. Lead pens of trade lambs made from $124-158 to average 600-630c/kg cwt. Old lambs continued to sell well with prices unchanged.
It was more of the same softer trend in opening trade at Bendigo and Dubbo NSW on Monday, with both markets reporting increased supplies.
Numbers at Dubbo jumped to just under 40,000 lambs and 6100 sheep. National Livestock Reporting Service (NLRS) said there were some excellent drafts of new season lambs offered. Supply did put pressure on new-season lamb values, with lighter trade weights falling $11 to average 550c/kg cwt. Demand was stronger for heavier trade lambs with prices unchanged fetching from $122-$150. Old trade lambs eased $5-$7 selling from $110-$150. Heavy export lambs gained $4 to reach a top of $198.
National Livestock Reporting Service (NLRS) at Bendigo said half the yarding of 9895 lambs were new season lambs. Not all buyers operated fully which kept a lid on any rate rises for trade and heavy export categories.
The weaker demand meant new-season medium and heavy trade lambs sold $4-$10 cheaper while lighter trade weight lambs sold $5-$7 dearer. New season lambs 22-26kg made from $144-$166 to average 600-620c/kg cwt. Export grades for old heavy lambs sold from $148-$166.
In a similar sized lamb yarding to last week, Ballarat followed the same cheaper trends with prices $3-$11 easier.
