Flocks of young unshorn lambs seperated, in the sheep yards, from their parents, out the front of the shearing sheds waiting to be shorn, on a small family farm in rural Victoria, Australia

Since the initial price reset at the start of January, movements in the lamb market have settled into a more stable range. While plenty of lambs were hitting the BBQ over the weekend, a sharp contraction in saleyard throughput due to the public holiday didn’t drive much of a rally, as may have been hoped.

Preliminary reports from the NLRS show pin saleyard lamb throughput this week at around 150,000 head and sheep throughput at just over 60,000. For lambs, this is around 43,000 fewer than the week prior, and almost 40,000 fewer sheep week on week.

That said, some of the key saleyards, like Wagga and Ballarat, did report an uplift in lamb numbers this week. Wagga saw a moderate increase in good-quality lambs. However, a noticeable absence of major domestic processors and other key export buyers impacted the willingness to stretch prices higher.

The Eastern States Trade Lamb Indicator dropped 5¢ over the week to 787¢/kg cwt. Heavy lambs really felt the pinch, however, with the National Heavy Lamb Indicator dropping 16¢ on the week to 792¢/kg cwt, just 1% above the five-year seasonal average. In markets where the offering was limited, like Ballarat, heavy lamb prices still averaged over $8/kg but have been on a sliding trend.

In the West, a very light week of volumes due to the holiday set in place volatility in prices, mainly to the downside for those selling. Muchea saleyard reports did, however, note that mutton prices held stable with a full gallery of buyers, and some big lines heading to restocking clients.

Restocker lamb prices made the most improvement of all types this week, particularly in NSW, where restocker lamb prices bounced 38¢. While restocker lamb values are around 13% higher year-on-year, they remain 9% below the five-year average for this point in the season.

Next week

There doesn’t appear to be much rain on the radar for sheep regions in the next week so expect more of the same in terms of supply, and paddock demand. We typically see the finished lamb market temper out and largely track sideways in February. That being said, we expect supply to remain more elevated during this period this year as lambs come off feed so the price pressure might not be done yet.r pice

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Data sources: MLA, Mecardo and BOM

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