The lamb market is feeling the effects of unusually hot autumn weather and a build-up in supply.
Up to $40 has been wiped of the value of heavy lambs at saleyards in the past few weeks, with extra heavy lambs at Wagga weighing 42kg carcass weight selling to $200 compared with $240 earlier in the season.
Feedback from export buyers was that processors have plenty of supplies of heavy lambs, with the phone running hot from agents and producers hoping to hook lambs as the season continues to deteriorate.
Another indication the market is over supplied: both domestic and export processors didn’t have orders at Wagga, despite much cheaper rates of $10-$19.
Latest industry data confirms an increase in lamb numbers, with agents reporting the hot start to April has highlighted low water and feed supplies in many areas, prompting farmers to sell lighter weight lambs early.
This was obvious at Wagga on Thursday, with each agent offering bigger numbers of light weight lambs in various conditions. Surprisingly, opportunistic feeders and feedlots cut a swathe through the lighter end purchasing the bulk of the numbers. Well-bred lambs made from $96-$146. Falling domestic prices have been linked to a glut of over the hook lambs and reluctance from shoppers to purchase lamb at existing prices. Most lambs 20-24kg sold $5-$10 cheaper, making from $110-$152 to average 574¢/kg cwt.
Heavy lamb rates are starting to slip below 540¢/kg cwt, with most heavy lambs selling from $144-$200. This translated into a cheaper trend of $10-$19.
Lamb prices showed a downward trend at opening sales in NSW and Victoria.
But with markets in both states offering fewer lambs due to the significant price correction the past two weeks, it’s difficult to judge were prices will stabilise.
National Livestock Reporting Service quoted competition as lacklustre at Bendigo, with not all domestic or export processors operating. In a yarding of only 10,000 lambs, trade rates slipped $2-$3. This converted to a carcass weight price of about 580¢/kg cwt. Heavy lambs were in short supply, with bidding reaching a top of $185 for a pen weighing about 31kg cwt.
An increase in supplies and drop in quality resulted in a cheaper trend of $10. Despite a smaller yarding of 3800 sheep, rates for trade and lighter weigh ewe mutton sold to weaker trends.
By Tuesday at Ballarat, the lamb market had begun to liven up after steady weekend rain. A substantial drop in supplies pushed trade lamb rates up by $5-$6 with the bulk averaging 604¢/kg cwt. Heavy lambs were unchanged, making from $149-$199.
