A dry winter in Victoria and NSW has begun to erode rates for livestock.
A surge of store cattle into prime markets and a slide in prime values meant prices fell anywhere from 10-30¢/kg last week. Store conditioned sock bore the brunt of the trend. At lamb markets, a shortage of lambs and mutton at most selling centres prevented any serious price corrections and rates generally softened $3-$9.
When prime market prices fall they impact on confidence, particularly with the season getting tight in many areas. However, cheaper rates offer buyers a chance in a market where previously they might have found the prices too high.
Fortunately, the chances of a drought have moderated. The Bureau of Meteorology said patterns had neutralised and the potential for an El Nino has passed. However, it said models still indicate an increased chance of warmer and drier winter averages for Australia.
While pastures may be green, there is little subsoil moisture beneath the green haze in some regions thanks to a run of repeated frost drying out grazing and crop paddocks.
The lamb market appeared to lose more traction this week in opening sales, with major selling centres reporting weaker trends. Price corrections of $5-$10 were reported for various grades.
Bendigo’s offering of 16,098 lambs and just more than 3308 sheep was a typical winter yarding. Quality ranged from good to average.
Rates dipped for trade and heavy lambs and National Livestock Reporting Service noted quality and weight, along with less competition, were key factors.
Trade lambs slipped $3-$6 to average 655¢/kg. Medium and heavy trade lambs sold at $135-168. Heavy lambs met a head wind, falling $5-$10, with isolated sales selling $15 cheaper. Heavy lambs topped at $226, with only four pens above the $200 mark. The bulk of the 26-30kg cwt made from $170-$190. Merino trade lambs sold to a wider price spread.
Lack of demand drove much of the price falls at Ballarat on Tuesday. Trade weight lambs needing finish were most effected, with prices $5-$8 cheaper. Trade lambs averaged 640-665¢/kg cwt. Merino lambs suitable for the trade sold at $123-$145.20, averaging 590-625¢/kg cwt. Heavy lamb rates were $6-$8 cheaper, selling from $165-$229.
Feedlot buyers held back too, despite good numbers of lambs suitable to feed on. Feed lambs fell $10-$11, making from $100-$139.20.
Store lamb prices went in the opposite direction, with a run of 480 first cross ewe lambs making $188. Mutton numbers increased and values continued to slide, with better quality lines $10- $23 cheaper and averaging 489-526c/kg cwt.
