Lambs prices surge across eastern Australia due to heavy rain

At the close of markets last week, the national lamb indicator had improved to 770 cents a kilogram carcase weight, while heavy lambs rose to 778c/kg cwt.

It suggests further evidence a lamb shortage is likely in the weeks to come, especially now that lamb yarding figures at some markets are showing a decline due to the severity of flooding across supply regions.

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At present, the bigger carcase weight money is for heavy lambs.

One of the major export companies is already predicting a shortage and said most processors were operating hand-to-mouth and scrambling for supplies.

Heavy rain last week across much of NSW and Victoria had an immediate effect on prices at Wagga Wagga, NSW, on Thursday, in a much larger yarding of 55,500 lambs and 15,500 sheep.

Meat & Livestock Australia said lamb prices tracked at dearer levels over all categories, with well-finished trade and heavy export lambs showing the greatest price increases.

There were several highlights in the sale, the most noteworthy was old heavy export lambs which jumped $10 a head and reached a high of $275.

The surge in rates meant heavy lambs constantly sold from $210-$270 to average 794c/kg cwt.

There were plenty of signs that domestic processors were prepared to push the market higher, due to diminishing supplies of quality trade lambs.

Shorn trade lambs received premium rates and consistently hit 850c/kg cwt and more.

The main run of trade lambs sold from $185-214 to average 830c/kg cwt

Robust demand for mutton kept rates firm.

Merino ewes sold to a top price of $164, with the bulk of the medium and heavy sheep selling at $110-$162 to average 420c/kg cwt.

There were some price spikes for lamb in opening markets at Dubbo, NSW, Corowa, NSW, and Bendigo and overall, the lamb markets continued to track around last week's price levels.

There were some big price increases at Dubbo on Monday with the forecast of torrential rain looming, helping drive price gains of $5-$10.

Lamb numbers were down by 11,000 to 9000 at the Bendigo market on Monday, with major flooding across Victoria and southern NSW preventing some lambs from entering the market.

MLA's National Livestock Reporting Service said there were some good-quality consignments throughout the offering.

Extra heavy young lambs made to $262, while heavier trade weights sold from $180-$220.

Lamb prices held their form at Ballarat on Tuesday when a single pen of old heavy lambs sold to $259, the bulk averaged 800c/kg cwt.