Supermarket competition drives up prices

Supermarket competition drive up prices


Sheep
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Rates lifted again built on tight supplies and stronger demand from domestic and export processors.

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Graeme Stone from Rodwells Shepparton with Polly and Graham Sudholz from Taminick, who sold 590 shorn lambs to a top of $259.20 at Corowa.

Graeme Stone from Rodwells Shepparton with Polly and Graham Sudholz from Taminick, who sold 590 shorn lambs to a top of $259.20 at Corowa.

Rates have lifted again built on tight supplies and stronger demand from domestic and export processors.

The strength of the Wagga market was a step up in demand across heavy export lamb categories when several companies clashed on pens weighing more than 30kg carcase weight.

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The heaviest pens returned $10 more, selling from $233-270 to average 728c/kg cwt. Lambs 26-30kg sold at $199-$248. Heavy Merino lambs reached a top price of $212.

Underpinning the trade market was major supermarket competition with lead pens of lambs 22-24kg selling at $185-$197, to average 810c/kg cwt. Feedlot and interstate restocking orders pushed store lamb prices up on the back of forthcoming rain.

Well-bred lambs reached a top of $185 and most sales at the heavier end averaged $165. The only flat spot was inferior small framed Merino lambs, which made $95-$109.

The lamb markets on Monday posted smaller yarding's in NSW and Victoria and dearer trends, as the market reacted to rain and the promise of more wet weather.

At Bendigo agents penned 8000 lambs and 3500 sheep. Merino lambs were once again a must have item, with prices for trade weights $10 higher, selling at $175-$193.

The reduced numbers of finished lambs sold to stronger competition with prices $10-$20 dearer for trade lambs. Most domestic grade lambs sold from $168-$200, to average 778c/kg cwt. Heavy lambs fetched $190-$278, to average 795c/kg cwt.

Mutton prices were off the boil $10-$27 with Merino sheep hardest hit. Trade and heavy sheep averaged 523-560c/kg cwt.

Lamb prices rallied at Corowa with 10,500 lambs offered. Given the restricted numbers of heavy lambs on offer and the lower Australian dollar, rates climbed $7-$9. All heavy lambs benefited from stronger competition, which led to a top price of $273.

The strength of the market was across trade weight categories thanks to strong supermarket demand. Heavy trade consistently fetched $193-$205 to hit a high of 870c/kg to average 817c/kg cwt.

At Ballarat on Tuesday the market responded to the weekend's rain. Numbers fell slightly with a smaller offering of 22,427 lambs and 9610 sheep. Heavy lambs were were $11-$18 dearer, amid reports at export works, supplies have tightened. The highest price recorded for heavy lambs was $300, this worked out at about 745-772c/kg cwt.

There was stronger bidding from domestic processors for trade lambs, where prices surged $6-$13 to average 801c/kg cwt.

Restockers and feedlots were among those paying up to $17 more for well-bred store lambs. Lambs with weight and frame fetched $122-$175. Meanwhile mutton market was solid for better quality sheep with some lines dearer to average 540-607c/kg cwt.

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