Lamb prices continue to climb

National sheep and lamb indicators have lifted across all categories since returning from the 25 March COVID-19 reporting hiatus. Underpinned by higher stock retention and a decline in turnoff, prices continue to find support, and with slaughter unlikely to pick up over winter, national indicators could continue to gain momentum.

On Tuesday, the national restocker lamb indicator was reported at 918¢/kg carcase weight (cwt), up 122¢/kg year-on-year, supported by improved conditions and strong competition across major sheep producing regions. New South Wales and South Australia saw the largest increases, moving 189¢ higher to 997¢/kg cwt and up 269¢ to 869¢/kg cwt respectively, albeit back from the highs seen in early March. The availability of lambs for processing remains subdued and this week’s eastern states slaughter report totaled 298,000 head, back 12% on year-ago levels.

National trade and light lamb indicators have followed similar trends, lifting 74¢ to 916¢/kg cwt and 107¢ to 876¢/kg cwt respectively when compared to year-ago levels. The New South Wales trade lamb indicator increased to 934¢/kg cwt this week, up 95¢ year-on-year, with top prices reaching 950¢/kg cwt at CTLX Carcoar. As lamb supply dwindles in NSW, buyers have increasingly turned to southern markets to source lighter weight categories.  The Victoria trade lamb indicator has increased 93¢ year-on-year to average 931¢/kg cwt this week.

Eastern states sheep slaughter declined by 40% year-on-year to 59,000 head for the week ending 5 June. Unsurprisingly, the national mutton indicator has increased 97¢ compared to year-ago levels, reported at 678¢/kg on Tuesday.  Notable increases have occurred in all states however, with New South Wales mutton prices increasing 162¢ to 747¢/kg cwt compared to year-ago levels.

© Meat & Livestock Australia Limited, 2020