Saleyard lamb prices bear weight of supply

Eastern states lamb prices finished last week dearer than the week before, with the Eastern States Trade Lamb Indicator (ESTLI) up 27¢, to 640¢/kg cwt. The first of the young lambs were sold at Griffith and Cowra on Friday and were in top quality condition.

However, Monday saw saleyard prices open firm to slightly lower as the pressure of supply outweighed demand. Dubbo yarded 39,285 lambs, up more than 15,000 head week-on-week, while yardings at Bendigo totalled 10,256 lambs, up around 1,500 head for the week.

The main topic of conversation dominating the saleyards is the fall in skin prices. Reports suggest that the Chinese tanning industry has slowed and most buyers are working on reduced returns of $3 to $7/head for crossbred lamb skins.

After yesterday’s sales, the eastern states restocker lamb indicator was 30¢ lower week-on-week at 561¢/kg cwt. Merino lambs eased 11¢, to 581¢, while light lambs are 7¢ higher on 586¢/kg cwt. The Eastern States Trade Lamb Indicator was up 10¢ on last Monday, but down 10¢ on Friday, at 630¢, while heavy lambs closed 13¢ higher on 647¢/kg cwt.