It's been quite a rollercoaster ride for producers considering grain-assisted lambs, with many choosing to steer clear of this option.
Over the past year, lamb markets have experienced extreme volatility, with prices fluctuating drastically.
Both sheep and lamb prices continue to face pressure, with some major processors absent or not participating when at the markets.
As a result of this instability, many producers are hesitant to invest in grain feeding lambs in the near future.
This caution is evident across all selling centres, with the quality of offerings deteriorating rapidly.
Livestock agents are highlighting the lack of financial benefits in feeding lambs at these low carcase weight price levels.
For instance, if a producer buys a lamb for around $100 a head and it takes $50 worth of grain a head to achieve a heavy lamb, breaking even becomes a daunting prospect.
Even on a good market day, where heavy lambs weighing 27-30 kilograms fetch $160-$195, the economics just don't add up.
Perhaps the only scenario where profitability may be feasible is for those who breed their own lambs and also grow their own grain.
However, even then, the margins are slim.
Meanwhile, meatworks continue to report a backlog of stock, exacerbating the situation, particularly amid several months of dry weather patterns.
At opening markets on Monday, all saleyards reported a mixed yet predominantly plainer range of lambs, with limited availability of well-finished lambs in both the trade and heavy export categories.
At Corowa, NSW, National Livestock Reporting Service reporter Caroline Ronalds highlighted the difficulty in assessing the sale due to the shortage of well-presented lambs.
The scarcity of well-finished trade lambs led to a $5-$10 price increase, with sales ranging from $115-$154.
Similarly, heavy lambs experienced a $2 uptick, selling between $160-$194.
Following the fortnight break due to the Labour Day public holiday, there was a noticeable increase in lambs at Bendigo.
However, the sale continued to be characterised by plainer quality and subdued buyer interest across the board.
The best heavy lambs fetched similar prices to those seen a fortnight ago, averaging between 570-620 cents a kilogram.
Notably, larger Border Leicester lambs faced a significant discount, dropping to 550c/kg.
The market experienced a loss of momentum across trade lamb classes, with price declines ranging from $10-$14.
Plenty of sales for lambs weighing between 20-24kg ranged from $85-$130.
However, there were pens of lambs that dipped below the 500c/kg threshold, signalling a downturn in market sentiment.
