The new restrictions on meat processing in Victoria are certainly having a significant impact on price.
Lamb prices have hit a 12-month low and it is not expected that we have hit the bottom of the price cycle.
The slowdown in lamb production caused rates to tumble at a time when the market would traditionally be reaching its high point for the year.
Cattle prices have been unmoved by COVID-19 and this week showed signs of moving above record prices set earlier this year.
The onset of more rain last week sent young store cattle rates soaring, with producers now guaranteed a wonderful beginning to spring in many parts of Victoria and NSW.
An example of this was at Yea on Friday when a pen of Angus heifers weighing 230kg made $1100.
The Eastern Young Cattle Indicator (EYCI) was reported at 758.25c/kg carcase weight, 226c/kg higher year-on-year.
In comparison the Eastern States Lamb Indicator sat at 696c/kg carcase weight, down 254c/kg on this time last year.
The lamb indicator remains 63c higher on a five year rolling average.
Victoria is the largest lamb processing state which has contributed to the instability, with scaled back production and plant closures due to COVID-19.
Another element creeping into our saleyards pricing according to Meat and Livestock Australia is global uncertainty and this was evident at Wagga when export processors gingerly made purchases.
In a yarding of 32,000 lambs there were 12,300 new season lambs.
Despite an outstanding selection of new season trade lambs, rates dipped $12 to average 650c/kg cwt. Old trade lambs fell $18 to average 600c/kg cwt.
Heavy suckers sold from $154-$172 to average 583c/kg cwt.
Old extra heavy lambs 30kg cwt plus topped at $204 to average 494c/kg cwt.
Saleyard volatility showed up again in opening markets on Monday, mostly due to the Victorian abattoir workforce scaling back for the next five weeks.
In Victoria and NSW rates again dropped by more than $8-$15.
At Bendigo in a yarding of 15,500 head, processor demand dropped off notably with prices continuing to fall.
New season heavy trade lambs fell $19 making from $145-$154 averaging 621c/kg cwt. Heavy suckers sold at $149-$180 to average 570c/kg cwt.
At Corowa the market did stabilise, with prices similar to last week, averaging 500 to 540c/kg cwt.
Ballarat on Tuesday was not immune to the cheaper trends in a bigger yarding of 7127 lambs and 6400 sheep. Price falls of $10 were common as the market lost traction in a smaller field of buyers.
Trade lambs sold from $118-$157 averaging 607c/kg cwt while heavy lambs sold to $185 averaging 546c/kg.
- Leann Dax is an NLRS market reporter.
