Prime lamb demand running hot

Despite a temporary backlog in supply which saw a huge yarding of 37,000 being penned after the cancellation of last week’s market for Australia Day, prices paid this week were kept at a respectable average of 450-480 cents a kilogram with isolated sales of hand-painted lots to 500c/kg.

HF Richardson and Co auctioneer, Bill Middleton, said the result was a terrific one given the numbers involved in the sale.

Selling in an earlier position, he said prices for heavy lambs held up well while the market for trade types was softer.

This meant a huge percentage of the shorn lamb yarding, which now offers premium length skins, sold from $100-$130 a head, with standout lines of extra heavy weights sold between $135-$168 later in the day.

While this was not the best result for the week ($172 at Bendigo Monday), the popular consensus among buyers was that the market should remain at this level or slightly easier for the remainder of the autumn.

However, once beyond this hurdle the future is far less clear, they added.

Buyer sources acknowledge the promotional work done by the industry this year had again served both the export and trade sectors well.

One supermarket representative said lamb had become a popular meat and at these prices the domestic market is not that far off where lamb can be sold profitably.

He thought about 450c/kg or thereabouts, while from an export perspective, buyers reported “recoverables" in skins and offal have all improved significantly since the spring.

However shipping dates for the US Easter demand, which close in mid-February will become the next hurdle with some mixed demand expected after this time as exporters reconsider their positions.

But it should not be something to be overly concerned about, as lambs are presently weighing enormously well with many buys beating estimates by one and two kilograms frequently.

With shorn lamb skin returns also trending higher, we are seeing some huge inconsistencies between the official market quotes and the actual results calculated at the meat works.

Shorter shorn skins from 12-25cm skins, buyers say, are returning about $6-$12 each, depending on skin length. While premium length shorn skins from the large spread trade and export lambs are sold from $13-$16 on a good tender result.

Over-the-hooks prices of 470-480c/kg are a good gauge of the actual market level.

However, enticing more producers to sell direct rather than at competition in the market place is an aspect buyers say has them miffed.