THERE’S always a spring price correction for lamb and it appears to have arrived a month early.
Prices for trade and heavy lambs fell anywhere from $6-$15 last week.
This resulted in the eastern states trade indicator closing at 602¢ carcass weight, down some 25¢.
Heavy lamb finished at 622¢, dropping 21¢/kg cwt.
While it is a substantial rate cut, it’s somewhat unusual at this time of year considering supplies remain tight and quality fair.
Prices generally yield to the pressure of new season lambs in August, when processors have the opportunity to ease rates off winter highs.
A dry May and then weeks of cold wet weather across NSW and Victoria will, according to most agents in the north, delay the turnoff of new season lambs in any great numbers.
The question on everyone’s lips after the Wagga market last week is how far prices are likely to ease before the market finds its groove in the weeks ahead.
The standout query at the market were new season trade lambs, where major domestic processors chose to walk on, causing erratic competition, with odd pen lots passed in.
New season trade lambs made from $132-$147, with buyers working on a $5-$6 skin value to average 594-620¢/kg cwt.
A lot, too, could depend on the number of lambs sold direct, when auction rates find a new level.
Historically, many producers prefer the safety of the over the hooks marketing. This, in turn, weakens competition at saleyards, particularly from major players such as supermarkets.
In penning sales this week, rain settled any further price corrections.
All markets reported a sizeable drop in numbers.
Widespread rainfall was the main reason for the significant reduction in lamb supplies at Dubbo.
Agents there offered only 27,700 lambs, back 11,850 on the previous sale. Lamb prices firmed, as major domestic and export processors continued to be the main influence on price results.
Trade lambs sold unchanged to $3 dearer, fetching $110-$168 to average 638¢/kg cwt.
Prices reflected the quality of new season lambs, with rates in a holding pattern.
Buyers report new season lambs are not weighing well and in these wet conditions cannot be held over for any length of time.
The trade lamb portion made from $124-$155.
On the export scene heavy lambs were firm to $5 dearer, selling at $154-$213.
The Bendigo lamb market recorded a positive reaction to the weekend rain in a small offering of just more than 7000 lambs and 3176 sheep.
The limited supplies are evidence of a likely shortage in the south.
This will be especially so if new season lambs are set back by the tough winter conditions.
The National Livestock Reporting Service (NLRS) said that quality tailed off quickly into small and mixed pen lots.
Trade lambs sold unchanged to $6 dearer, making from $115-$170.
Heavy lambs topped at $210, averaging 643¢/kg cwt.
At Ballarat on Tuesday, a smaller offering of 7237 lambs 3896 sheep sold to better competition. Prices were up $3-$6.
The NLRS noted a few pens of new season lambs were offered there, selling to $167.
Most domestic lambs sold from $118-$170. The heaviest returned $160-$196.
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