Lambs are going direct to saleyards as over-the-hooks prices lag

Lower over-the-hooks prices directing lambs to saleyards

Sheep
NOT HOOKED: Producers are sending more lambs to saleyards because over-the-hooks prices are lagging behind the auction market, says MLA.

NOT HOOKED: Producers are sending more lambs to saleyards because over-the-hooks prices are lagging behind the auction market, says MLA.

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Saleyard prices for lambs are running well above what processors are offering for over-the-hooks sales.

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Over-the-hooks lamb prices are now lagging more than 40 cents a kg behind saleyard vales, according to Meat & Livestock Australia.

The national trade lamb indicator this week has averaged 794c, a 44c premium to OTH quotes.

With above average numbers of lambs yarded, producers have been increasingly selling through saleyards rather than direct to processors this year, MLA said.

National medium weight trade lamb OTH prices this week averaged 750 cents a kg, unchanged on last week, but back 100c since July 22 when it reached its 2019 peak.

NSW had the strongest average prices directly to processors at 783c, with Victoria and SA at 775c and 776c a kg respectively.

WA processors are trading at a significant discount in comparison to their eastern counterparts, with an average OTH price of 665c.

MLA said a lag was often seen between OTH grids and the current market prices seen in saleyards, particularly in a rising market.

Meanwhile, the Eastern Trade Lamb Indicator rose three cents yesterday to 805c while the heavy lamb indicator added one cent to 807c.

The mutton indicator jumped 10c to 557c.

The story Lambs are going direct to saleyards as over-the-hooks prices lag first appeared on Farm Online.

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