Finished lambs continue to find support

For the week ending 21 February, eastern states lamb slaughter totalled 324,106 head, 16% below year-ago levels. Victoria reported the largest decline in lamb numbers, easing 19%, followed by SA at 15%. Sheep slaughter followed suit, easing 25% year-on-year to 116,874 head, driven by a large decline in sheep from SA, as well as NSW and Victoria.

With the prospect of yardings easing in the weeks ahead, domestic and export processor competition for heavy lambs increased and record prices were seen at a number of saleyards this week. The eastern states heavy lamb indicator on Wednesday 26 February closed at 933¢/kg carcase weight (cwt), an increase of 43% (or 283¢) year-on-year.

With concerns over short-term lamb supply and improving market confidence, prices for finished lambs have seen consistent weekly rises since the start of 2020. Producers with quality finished lambs have been buoyed by the strong prices on offer.

Continuing the trend of recent weeks, eastern states indicators have continued to find support. The eastern states mutton indicator continues its remarkable run, reported on Wednesday at 695¢/kg cwt, up 287¢ year-on-year and a new record. The eastern states restocker lamb indicator achieved a new high on Wednesday, at 1,044¢/kg cwt, up 416¢ year-on-year.

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