LAMB contracts of 850c/kg for immediate to August delivery of 20-32kg crossbred lambs have been offered by processors this week as supplies for good slaughter lambs tighten amid expectations of a late sucker turnoff.
And supermarkets have also reportedly offered 900c/kg-plus for 20-28kg sucker lambs delivered in September.
At Bendigo on Monday, buyers consistently paid 800-1000c/kg for the best heavy trade and export weight lambs.
Meat & Livestock Australia’s National Livestock Reporting Service said further price gains of $10-$20/head were evident across most of the yarding of 13,400 lambs, 4225 more.
The NLRS said it was the biggest offering at Bendigo for about a month, with the stronger market drawing out more stock, particularly in the sheep run.
Five pens of heavy export lambs in the 33-36kg cwt range sold above $300 to a top of $309, with most export lambs selling above $260/hd at a ballpark cost of 880c/kg cwt to processors. The NLRS said hot spot of the market was lambs in the 24-30kg cwt range that took in supermarket and lead domestic competition. Crossbred lambs sold from $200-$270 to average over 900c/kg and with some of the neatest heavy trades estimated above 950c/kg cwt at times. The average run of medium trade lambs mostly $155-$185. Decent light lambs to processors mostly made $90-$140. Rates for Merino lambs also rallied with the best fed types with consistent fat cover selling above 800c/kg cwt. The heaviest Merinos $220 to a top of $275, with decent tradeweights making $160-$193. There was some lines of very light little Merino lambs in wool that sold from $45-$113, the NLRS said.
Sheep sold to very strong demand at Bendigo, with only a few pens of very light ewes under $100 in the market. The heaviest Merino ewes from $140 to a top of $194/hd; big crossbred ewes to $165; and Merino wethers to $179/hd. Good lines of mutton were estimated as costing processors over 500c/kg cwt.
At Ballarat on Tuesday, the scarcity of good heavy slaughter lambs led to buyers more regularly paying more than 1000c/kg to producers that offered finished 30kg-plus lambs.
The NLRS said Ballarat’s lamb numbers decreased by 3660 head to 16,321. The secondary plainer lambs sold firm to $5 dearer, light trade sold to $10 better, medium and heavy trade sold to $26 dearer. Heavy export lambs were in hot demand, selling to a top of $356 to be $26-$38 stronger, the NLRS said. Lambs back to the paddock sold from $36 to $146 and lambs to feed on made from $154-$172. Light trade lambs under 18kg sold from $118-$166. Trade lambs 18-22kg sold from $160-$215, and lambs 22-26kg made $196-$282, or from 830-970c/kg cwt. Heavy export lambs 26-30kg made $264-$312 and over 30kg lines sold from $290-$356, ranging from 970-1000c/kg cwt.
However, by Thursday with Wagga Wagga agents yarded 49,400 lambs, 10,400 more than last week the NLRS said lamb prices came off the boil by $10-$20/head. Also factors in the weaker trend was a drop in quality with more wintery lambs appearing, and reports of some processors starting to reduce kill shifts following the quick price rise in the market this month, the NLRS said. Overall the market reverted back to performing more around quality, leading to a wider variance in carcass price rates. The very best slaughter lambs still held above 900c/kg in each weight category, but with the average run of crossbreds varying from 780-900c/kg. Heavy export lambs over 30kg cwt sold from $239-$310 to average $284 at a ballpark cost of 850c/kg. The market lost the most form on the mixed and woolly lots. The NLRS said heavy 26-30kg cwt crossbred lambs made $216-$265, with the pick of the supermarket style pens above 900c, but the market breaking up underneath for an average cost of 840c/kg.
The NLRS said neat trade lambs made $170-$228 at Wagga, again with some sales above 950c, but loosing traction on the average run. Overall a shandied cost of 820c to 880c/kg covered a lot of crossbred lambs. Quality Merino lambs with weight and finish still received strong support and the best heavy types made $216-$239, with well-covered trade Merinos making $169 to $217. But the NLRS said bidding for any Merino lambs that lacked fat was quickly pulled back. The main run of small Merinos in the 12-16kg cwt range sold from $76-$134.
Elders Bendigo auctioneer and livestock manager Nigel Starick said the market was operating on “bums on seats.”
“If they’ve got the numbers the job will come back, and if they can’t get the numbers the job will lift,” he said.
“We could find by next week that Bendigo and Ballarat might be a bit softer, but by Wednesday/Thursday the job might lift again because they’ve got through the glut from Wagga and Wagga might not yard so many next week either.
“No one can see a great number of suckers coming in before late September,” he said.
“The season is just cold now, the grass is not growing and there are plenty of place that haven’t had rain, so we can’t see a number of suckers coming in until at least late September.
“So the job should hold on all grades of lambs because like I said, it is bums on seats, they’ve got to fill their orders, they’ve got to have numbers.”
HAVE YOUR SAY