Australian lamb, mutton prices ease as saleyards get a correction

The best trade lambs have been quoted as making up to 850 cents a kilogram carcase weight in both Victoria and NSW in the past week.

At the close of saleyard trading on Monday night, the national price average for heavy lambs weighing 22 kilograms or more had dipped to 794c/kg.

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Trade weights had dropped to 759c/kg cwt.

The sheep market has struggled to tread water over the past few weeks.

Mutton prices have been subject to extreme volatility, with Victoria and NSW experiencing a mixed bag in price trends, according to results flowing out of some major sheep saleyards.

The national price indicator for mutton fell 89c to 401c/kg on Monday.

The National Restocker Lamb Indicator lost 39c over the week to finish at 703c/kg.

Restocker lamb prices are looking like good value compared to finished lamb values.

NSW stock agents believe store lambs are yet to find a base price with downward pressure still on prices, and believe this could be the case for some time yet.

Lamb slaughter figures eased 1 per cent on the previous seven days.

The results were an estimated kill of 357,532 on a week earlier and 5pc higher than this time last year, Meat and Livestock reported.

Sheep slaughter numbers rallied in the north which caused interstate processors to lead the charge for mutton at Victorian saleyards.

The sheep kill lifted 6pc to 114,551 head, MLA said, up 6pc on the previous week, and 15pc year-on-year.

The headline sales in the past week were at Wagga Wagga, NSW, on Thursday last week where new season heavy lambs sold to $295 a head and nudged 900c/kg cwt.

In the opening markets, Monday prices headed south at a rapid rate across all saleyards.

Select pens of young lambs were estimated at $20-$40 cheaper, averaging 790c/kg cwt at Bendigo on Monday, where the top pens sold to $225.

MLA's National Livestock Reporting Service said lower rates were also recorded for the best trade lambs at Hamilton on the same day.

Bidding for the general run of wooly young lambs to domestic orders ranged from $127-$183, with an average run of crossbred lambs in the 22-24kg range averaging $160 at Hamilton, NLRS reported.

Prices for store lambs have followed the market down and most sales at Bendigo were below $100, while trade types sold to $152.

In central Victoria at Ballarat on Tuesday, lamb rates slumped $20-$40, except for the heaviest lambs which shed only $14 to average 846c/kg cwt.

Mutton took a hit falling $20 to $53, with mutton ranging from 272-371c/kg cwt.