LAMB prices improved significantly due to a combination of rain, the lower Australian dollar and tightening supplies at selling centres.
And while last week’s wet conditions distorted the market somewhat by disrupting regular supplies, there is now speculation that the lamb market should continue to show signs of improvement following the dry start to autumn.
Market pundits believe the current under supply situation has caused processors to lift rates, and there could be further upswing should the season continue to improve.
It is expected farmers, particularly those in southern areas, will hold lambs now and increase weight gain from early sown crops, which should keep a lid on numbers and continue to firm markets.
If the forecast for a wet winter eventuates, it’s probable processors will look to northern lamb markets to maintain throughput levels. Having said that, some southern domestic processors have already entered the market at Wagga in search of light and medium weight trade lambs.
The shortage of numbers at southern selling centres impacted on the big market of 35,550 at Wagga. It was a stellar sale given the offering was outstanding over all categories. Heavy lambs were up to $11 dearer recording a top price of $209.20, with plenty of sales recorded above $190. Heavy lambs averaged 520-567c/kg. Major domestic processors came out with guns firing sending prices $14 higher. The National Livestock Reporting Service (NLRS) said the average price for trade lambs was 573c, with plenty of sales hitting above 600c/kg cwt.
The steady rise in lamb markets is tipping export rates above year ago levels. Heavy lamb prices posted big gains at Dubbo. A lift of more than $18 for heavy lambs, weighing above 30kg cwt, saw lambs hit $207 to average 537c/kg cwt. Lambs weighing 26-30kg regularly made from $169-$193 to average 606c/kg cwt. Trade lambs also improved $2-$9, as buyers were forced to lift rates to secure loads. Across the board domestic lambs averaged 576c/kg cwt.
Lamb prices rose again at Bendigo on Monday in a bigger yarding of 14,120 lambs. The stronger demand from domestic processors saw trade lambs climb $5-$7 to average 572c/kg cwt. The NLRS said the strongest demand was for lambs weighing 22-26kg. Heavy lambs had gains of up to $24 selling at $155-$203 averaging 501-432c/kg cwt.
Lamb numbers surged to 24,467 at Ballarat on Tuesday. Most lambs sold to slightly dearer trends. Heavy export lambs 26kg plus made from $158-$212, averaging 522-586c/kg cwt. Trade lambs were mostly firm to a few dollars dearer.
