Farmers are grappling with uncertainty as they seek to forecast fluctuations in lamb market prices.
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For a while, life on the farm appeared promising, with lamb rates reaching levels conducive to moderate profits.
However, within the span of a couple of weeks, market conditions have become increasingly volatile.
The opening lamb market prices on Monday encountered a notable obstacle, as fewer processors were in attendance and those that did operate reduced rates by $20 a head and beyond as the sales unfolded.
The sheep and lamb markets in Bendigo experienced a notable downturn as buyer numbers dwindled.
The absence of two major exporters and a lack of major supermarket presence had a significant impact on prices at the sale.
Although there was an improvement in the quality of heavy lambs compared to the previous week, producers were surprised to witness a $20 decrease in rates, causing the sale to lose momentum.
Consequently, agents were forced to pass in stock late in the market.
Heavy lambs weighing more than 30 kilograms ranged in price from $179-$240, averaging between 620-650 cents a kilogram carcase weight.
In the domestic market, prices saw a decline of $10-$12, with better trade types fetching between $130-$168, averaging between 600-650c/kg.
The sheep sale mirrored the trends of the lamb market, starting at lower prices and continuing to drop significantly as the sale progressed.
Heavy sheep fell below 200c/kg, while light sheep dipped below 100c/kg.
At Ballarat's sale on Tuesday, a similar trend persisted with fewer major exporters and domestic processors participating in the marketplace.
The dynamics appear to revolve around supply, and even a slight change in lamb numbers within the auction system can significantly impact prices, given the substantial volume of stock being sold directly.
There were big numbers of lambs at Ballarat benefiting from grain or finished on lucerne.
However, competition was lacking, particularly in the heavy lamb categories, as most buyers were reluctant to exceed the 660c/kg threshold.
This resulted in a price correction of $20, with most lambs weighing more than 26kg trading within a range of $170-$245, averaging 658c/kg.
Demand for trade lambs was inconsistent, leading to a $16 decrease in rates, with prices ranging from $125-$166.
On the other hand, the mutton sale faced subdued competition, as not all buyers were in attendance on the day.
Prices generally experienced a decline of $20, averaging in a range between 166-244c/kg.
