The lamb market fell again last week after signs of oversupply caused prices to fall sharply.
Prices at Wagga Wagga and Griffith NSW led the decline, following a softer trend that started two weeks earlier.
Extra heavy lambs have been hardest hit with companies such as JBS, Australian Lamb Company and Thomas Foods International not operating fully, or at all, amid reports they have adequate numbers flowing direct to abattoirs.
Heavy lambs at Wagga fell $20-$27 with the National Livestock Reporting Service estimating a rate about 698 cents a kilogram carcase weight over the heaviest pens weighing more than 30 kilograms.
Bidding reached a top of $224 for new season lambs, while heavy old lambs grain assisted reached $244.
A similar rate was recorded at Griffith where extra heavy new season lambs topped at $230.
Lambs suiting supermarket and niche domestic orders showed a little more resilience.
Lambs 21-24kg have been trading at 750c/kg with the best pens commanding above 870c/kg at times.
What has become evident is the importance of fat cover on lambs.
Supermarkets avoided four score lambs keeping their focus on lambs which were weaned or sucker lambs in the three score condition.
The lamb market this week showed a further price correction as the sale reacted to the availability of more lambs in Victoria.
The overall result was a steep drop in national price trends.
Price averages for heavy lambs fell 57 cents to list at 743c/kg carcase weight.
Trade lambs settled at 757c/kg to be 53c lower, while Merino lambs were least impacted easing 9c to rest at 743c/kg cwt.
In the south, Bendigo is in the middle of its spring flush and numbers fell back due to the cheaper market the previous sale.
Agents sold 25,000 lambs declining by 9,000 head.
The heaviest new season lambs weighing 30kg cwt plus sold from $215-$234 averaging 661-701c/kg cwt which equates to a $15 price drop.
Heavy trade lambs 22-24kg also dipped $15 making from $163-$184 to average 722-758c/kg cwt.
The mutton market new no boundaries surging ahead $20 for heavy sheep.
Heavy crossbred ewes made from $180-$238 heavy wethers sold at $181-$238.
Heavy Merino ewes ranged from $179-$232.
It was a similar story at Ballarat in a bigger yarding of 18,299 lambs and 9862 sheep.
Trade and heavy lambs sold to weaker demand from some processors which resulted in a dip of $10-$15
The better presented 21-24kg sold at $154-$198 averaging 752c/kg cwt, while heavy lambs new season lambs reached $222 to average 730c/kg cwt.
- Leann Dax is an NLRS market reporter.
