The lamb market has taken a backward step ahead of winter. Price falls of up to $5 begun at saleyards on Thursday last week as bigger numbers of lambs in all categories were offloaded at markets in NSW ahead of the long range forecast, suggesting there in no indication that June to August will fall into its usual winter weather pattern.
It shows just how delicately poised the market is between supply and demand as producers now stand on precipice with a real sense of risk if they hold unfinished stock, with pasture still lacking growth and feed grain prices soaring
Agents said many farmers were biting the bullet and selling unfinished stock to concentrate on maintaining their ewe flocks with lambing well under way in many areas. This was obvious at Wagga, which commenced on a cheaper note when agents offered 13,000 more lambs than the previous market. With 34,000 lambs on offer prices didn’t crash but there were isolated sales of heavy lambs 25-26kg which fell $20 in places. The bulk of the heavy lambs averaged $4-$7 cheaper making from $156-$226. Trade lambs sold to erratic competition which was quality related. Generally trade lambs slipped $5 making from $123-$162 to average 618c/kg cwt.
The highlight of the market was the sheep sale with ewe mutton selling for a record price of $219.60. The lamb market has kicked off the week on a cheaper note as bigger numbers start to come into saleyards. With 51,970 lambs on offer between Victoria and NSW including 24,600 at Dubbo alone rates didn’t fall significantly but there was an adjustment.
That was true of most eastern states markets on Monday with rates down by $5-$20. Dragging down the market are bigger numbers of plainer stock at a time when demand from restockers and feedlots is slowing. It showed up at Dubbo On Monday where lambs less than 20kg fell $5-$20.
Meanwhile at Bendigo on Monday lamb rates continued to weaken, but there were signs the heavy lamb market could be starting to stabilise, with prices easing $2-$6 to average 610c/kg cwt. On the back of weaker demand from processors trade lamb prices slipped $4-$11 averaging 596c-617c/kg cwt.
Demand for mutton fluctuated with some heavy sheep showing increases while heavy crossbred ewes fell $$3-$15 after some strong sales according to the National Live Stock Reporting service of up to $198 the previous week.
And at Ballarat on Tuesday the lamb market also had the wobbles in a smaller yarding of 19,763 lambs and 3,972 sheep. Despite the good quality offering of trade and heavy lambs, rates generally dipped $5-$10 with trade lambs averaging 592c and heavy lambs at 599c/kg cwt.
