Summer lamb rates might have peaked as increasing numbers of contract lambs make their way to processing plants. This is alleviating pressure for processors to push prices at physical markets, which was noticeable at Wagga and Griffith lamb markets last week.
At Wagga there was an increase in lamb numbers to 26,400 lambs. The biggest price correction was for trade lambs with major supermarkets very selective when making a purchase. Prices fell back $6-$10 to average 600-636c/kg cwt. There were some strong sales for extra heavy lambs over 30kg cwt with prices topping at $234. Generally though heavy lamb rates softened $3-$7 averaging 600-631c/kg cwt. Prices varied for secondary lambs back to the paddock, with some lighter weight categories $14 cheaper selling at $78-$118.
Meanwhile mutton prices lost traction with rates falling $11-$18. Heavy mutton made from $100-$138 while trade sheep sold at $66-$105. The national lamb indicators varied last week but still sit above year-ago levels for come categories. Merino lambs lifted 7c to 592c/kg, while restockers were up 23c/kg to sit at 651c/kg. Trade lamb indicator dipped 1c while heavy lambs were back 2c/kg to rest at 635c/kg.
The biggest price correction recorded was at Bendigo which was the same centre that posted the biggest price gains a week ago. The drying conditions showed their hand where the offering of 12,444 lambs was described as plainer quality by the National Livestock Reporting Service (NLRS). On the export front changers to prices in the past week show how the market is still struggling to find balance between supply and demand and a sustainable peak. Prices dipped up to $14 with sales ranging from $155-$193. All Heavy lamb sales sold well below 600c to average 566-583c/kg. The hot conditions and plenty of lambs direct to works suggest buyers are not comfortable to be consistently paying record summer rates for trade lambs despite the tight supplies at physical markets.
It was a cheaper market overall at Corowa NSW on Monday where the quality was good to plain for sheep and lambs. Heavy lambs were $6-$12 cheaper while medium trade weight lambs were down by $8 light lambs sold $21 lower although new season store lambs made from $75-$126. The sheep market sold to weak competition and prices were generally $11-$14 cheaper across the board. The shine came off lambs at Ballarat on Tuesday which has dropped $7-$12 in a week. Heavy lambs were hardest hit averaging 616c/kg cwt. Not all trade lamb buyers operated fully and prices retreated $8-$10 averaging 627c/kg cwt. Store lambs lost ground with some sales up to $9 cheaper.
