Check out skin prices this week and you may be surprised, with skin buyers winding values back abruptly.
Lamb buyers could face bigger discounts this week by as much as another couple of dollars, due to the Chinese government shutting down two major hide factories.
Prices for trade lamb skins are now averaging $4-$6 at best, with a premium of $8 paid for an exceptional skin.
Export and major supermarket competition has had a big influence on lamb prices in recent months. Latest data shows prices are still trending near record levels, despite the sharp drop in skin values.
The wet season and demand for quality lamb on the world stage are the main reasons for extra heavy lamb rates remaining high in the winter. Heading into spring, it will be interesting to see just how significant the price adjustment will be when new season lambs enter the supply chain.
The appetite for trade lambs has been insatiable. Back to back gains most weeks has pointed to a strong winter selling season for producers fortunate enough to ride out the dry conditions.
Wet conditions in north and south, combined with a protracted drought earlier in the year, have kept supplies tight. Ballarat last week saw lambs 25-26kg sell to the trade for $193. Gerry White of TB White said to my learned friend Murray Arnel that he doesn’t recall lambs consistently making 700c/kg cwt in his lifetime.
According to Meat & Livestock Australia, the eastern states trade lamb indicator moved higher. Buoyed by tight supplies, the market closed at 639c/kg cwt, up 21c on last week.
After last week’s prime lamb sale at Wagga trade lambs sold well, in spite of most producers now offering the tail end of their stock. As prices edged higher, comments were made that it was getting to levels that were “unsustainable”.
Both the northern and southern markets didn’t live up to expectations in early trade on Monday.
Bigger numbers at Dubbo of more than 39,000 lambs kept a lid on rate rises. The best price recorded was $212 for heavy lambs which were quoted $11 cheaper. Trade lamb prices slipped $3-$6 compared to the previous week to average 614c/kg cwt. There was strong restocker activity, with good numbers tucked away for a sale at a later point in the season. Well-bred lambs with frame fetched $102-$127.
Bendigo’s offering of 10,256 lambs and 1700 sheep was a typical winter yarding. Rates fluctuated for trade lambs and National Livestock Reporting Service (NLRS) noted quality and weight were factors in results. Trade lambs slipped $12-$14 to average 656c/kg. Heavy lambs sold at $140-$196.
