Lamb producers are experiencing a surge in prices just before Easter, driven by a tightening supply situation that has left domestic processors and exporters scrambling for numbers.
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The price of lamb has soared by more than $30 a head within a week, marking an increase from 700 cents a kilogram carcase weight to 750c/kg cwt.
At the Wagga Wagga, NSW, market last week, trade lambs were notably scarce, prompting prices to soar beyond 750c/kg on multiple occasions, with an average of 700c/kg cwt, according to Meat & Livestock Australia's National Livestock Reporting Service.
Agent James Teirney, Riverina Livestock, Wagga Wagga, highlighted that the unexpected reduction in numbers on the day compelled buyers to act swiftly.
Mr Teirney noted that it was the smallest yarding since Christmas, further compounded by the region receiving 25 millimetres of rainfall just 48 hours before the sale.
He also pointed out the limited availability of good-quality stock in each agents' offering, with weights dropping rapidly.
Regarding future prospects, Mr Teirney mentioned that winter contracts had been issued, with processors offering upwards of 750c/kg cwt for grain-finished lambs.
However, he cautioned that the downside of these contracts is the limited availability of lambs for producers looking to participate, as most have already passed through the system and been processed.
Supply and demand dynamics favoured producers at the recent Bendigo lamb market, as the offering of lambs decreased compared to previous weeks.
Ahead of the Easter holiday break, agents brought forward a reduced yarding with 13,775 lambs and 4600 sheep.
While the lamb market witnessed a price increase of $10-$20, it couldn't quite reach the lofty highs recorded north of the Murray River in NSW at Wagga Wagga.
Surprisingly, the standout performers at the market were secondary lambs in the 15-20kg cwt range, with some destined for Middle Eastern countries fetching an impressive $25 rise compared to those remaining in the domestic system.
The limited availability of trade lambs compelled buyers to push prices upwards, with a substantial increase of $15-$20, topping at $174 and averaging 626c/kg cwt.
Heavy lamb sales caused a surge in bidding activity, lifting prices $20-$25 higher.
Heavy lambs traded from $160-$244, with most averaging 671c/kg cwt.
The sheep market displayed fluctuating price trends, particularly with little demand for light ewes, resulting in a dip of $12, the NLRS reported.
However, medium and heavy sheep sales remained relatively stable.
Medium and heavy grades at the Bendigo market fetched prices ranging from $33-$91.
Leann Dax is an NLRS market reporter.
