The awaited uptick in supply appears to have materialised last week, disrupting what had seemed to be a moderate price climb at markets in recent weeks.
In early trading, the lamb market presented a mixed picture, as both supermarkets and key export companies exhibited reduced participation at saleyards across Victoria and NSW.
Prices tendered demonstrated a degree of volatility, with a decline evident towards the end of the previous week.
Not surprisingly, the best-quality young lambs suitable for slaughter managed to maintain their value, while lambs with drier skins experienced downward pressure.
During the week, the national indicator attracted price adjustments, roughly ranging from 10-40 cents a kilogram.
For instance, trade lambs, which were listed at 480c/kg earlier this week, witnessed a 10c/kg decline compared to the previous week.
However, heavy lambs remained steady at 505ckg.
It is important to note that these fluctuations in lamb prices do not apply across all states as regional differences are noticeable.
The northern markets have shown stronger trends, outperforming southern markets.
In Bendigo on Monday, prices were notably influenced by the quality and weight of lambs in a larger yarding of 26,660 sheep.
Heavy lambs remained in short supply, and lambs weighing more than 26 kilograms retained their value due to their limited availability.
However, the trade weight categories experienced a decline of $5-$10.
Notably, not all major buyers were present, and bidding varied, with some buyers favouring freshness, but becoming more cautious with lambs showing signs of dryness.
The spotlight in the market was on lambs destined for the Middle East, with processors acquiring the bulk ahead of restockers.
In the 12-16kg weight range, meat companies dominated the light lambs, selling them for prices between $66-$86.
Trade lambs averaged between 420-520c/kg, with the main heavy trade categories easing back to an average range of 460-490c/kg.
Heavy lambs were sold in a range of $130-$164, averaging more than 500c/kg cwt.
On the other hand, the mutton market faced a lack of support, with four companies not participating in the sale, resulting in a single sale at $42 for Merino ewes.
All other mutton sales ranged between $20-$30, falling below the 100c/kg threshold.
It is worth noting that, from a cost-a-kilogram perspective, lean sheep have generated the best returns.
Ballarat's sale on Tuesday caused numbers to jump to 29,500 lambs and 4500 sheep.
Trade buyers were selective, and prices slipped back $5 to average 505c/kg cwt.
- Leann Dax is an NLRS market reporter.
