There was a significant price correction in prime lamb values last week after several sales at better rates.
Most of the eastern states indicators for trade lambs fell last Thursday, with only light lambs holding their own. The national trade lamb indicator slipped 20¢ to 667¢, while heavy lambs dipped 23¢ to settle at 649¢/kg. The three short trading weeks had no impact on the restocker indicator – up 24¢ to sit at 782¢, exceeding the previous record of (778¢/kg cwt).
The higher numbers and the second of three short trading weeks took the sting out of the market at Wagga, with prices falling $12-$20.
Trade lamb prices varied greatly, with some longer wool drafts heavily discounted at times. Shorter skinned trade lambs benefited from the best competition, reaching a top of $169. The bulk of the trade lambs regularly made from $124-$166 to average 647¢/kg. Heavy lambs were well supplied, however demand from all processors was subdued which resulted in a rates dipping $20 to average 616¢/kg cwt.
Stronger prices for well-bred lambs returning to the paddock were achieved by understocked interstate producers, paying up to $5 more. Plain lambs returning to the paddock made more than $100. The bet on wet weather drove mutton higher at Wagga, as processors scrabbled to secure loads.
Bidding was dominated by Fletchers International at Dubbo who shifted gears on the prospect of tightening supplies, leaving some exporters in the cold. The yarding of 8940 sheep comprised mostly of medium and heavy mutton and saw heavy crossbred ewes reaching a top of $197.20. National Livestock Reporting Service (NLRS) data showed prices jumped $15-$22 for heavy weights.
Rates weakened $10-$22 in NSW and Victoria on Monday, even with markets built on tight supplies. Major processors had a consistent supply of over the hook lambs leading into the short trading weeks, enabling them to take a back seat.
Wet weather caused lamb supplies to tighten at Bendigo on Monday, with less numbers of well finished trade and heavy export lambs. NLRS said lead pens of trade lambs sold from $140-$165 to average 637¢/kg cwt, and in isolated sales choice pens did hit 660¢/kg. The best results were achieved for some pens of extra heavy lambs, which made from $171-$216.
Processors upped the ante for plain lightweight lambs, averaging 650-700¢/kg cwt. Rain inspired restockers and feedlot buyers who put a floor in the market, with lambs returning to the paddock fetching $87-$138. Mutton mirrored the cheaper trends, with prices easing $6-$25. Heavy sheep sold to $158, while light and medium grades made from $55-$128 to average 405-496¢/kg.
