Lamb prices rebounded somewhat last week, while plainer stock fluctuated depending on quality or restocker competition at different markets.
Signals out of NSW suggested prices could gain strength and have a carry-on effect into Victoria this week. Price trends at the Wagga and Griffith saleyards in NSW strengthened $4-$7, with several influences in play.
First, the season has delivered enough feed and water to keep prices for store sheep and lambs at strong levels in store markets, also giving producers confidence to hold lambs back.
Second, results in the past week show there’s depth in buyer demand from restockers up to 21kg carcass weight, despite the price correction.
The third element to the equation is domestic and export processor competition, which has strengthened at major saleyards in NSW as producers reacted to the price correction. Fewer numbers forced all buyers to up the ante for their share of trade and heavy lambs.
Agents said the downturn was seen as more evidence that lamb supply in NSW is likely to track below usual spring levels.
An example was a noticeable lift in rates at Griffith for lambs 23-25kg. Domestic and export processors regularly payed out to $149 for lambs weighing 24kg, the equivalent of 591¢/kg, while the better heavy trade lambs at Wagga sold from $133-$148. Heavy lambs fetched $138- $175, with a single pen recording a top price of $178.
A lot will depend on how demand holds up from processors and how many lambs flow direct to abattoirs. We are already seeing sporadic competition from supermarkets, with reports they have plenty of lambs around them.
In opening sales on Monday, a hefty reduction of numbers caused prices to lift by up to $24.
Corowa led the way, underpinned by a shortage of supplies, with 10,000 lambs penned. National Livestock Reporting Service quoted the market $10-$24 dearer, with plenty of lambs selling above 600¢/kg cwt. Heavy lambs remained in short supply; those of 25-30kg cwt returned $150-$175. Trade lambs fetched $115-$158. Mutton headed in the same direction selling $6-$7 higher to average 380-411c/kg cwt.
Lamb numbers dipped at Bendigo on Monday by 4500 to 16,975. Limited numbers help drive gains of $2-$6 for trade lambs, with the best topping at $145. Heavy lambs spiked by $9 to average 540¢/kg. The main run of store lambs back to the paddock averaged $108.
Lamb numbers at Ballarat on Tuesday increased marginally to 17,268. Quality was outstanding with a wide selection. Trade lambs sold $3-$4 higher, averaging 559c/g cwt. Heavy lambs lifted $6 to average 570¢/kg cwt.
