During the past fortnight, lamb markets have shown hints of weariness following what had been an encouraging start to 2024.
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Meat & Livestock Australia's National Livestock Reporting Service had reported the yarding for the past week was 28 per cent above the five-year average for the sale week.
Despite a 24pc decrease in sheep numbers, this did not significantly relieve the decline for mutton, as the mutton indicator dropped by a substantial 72 cents a kilogram carcase weight to settle at 210c/kg, pealing back all gains it had made.
Due to the sheer weight of numbers in recent weeks, buyers hold the reins, allowing them to exercise choosiness and offer reduced prices at the saleyards.
Data from the NLRS reveals a downturn in the heavy lamb and trade lamb indicators, with heavy lamb indicators experiencing a 29c/kg week-on-week decline, settling at 643c/kg.
Similarly, the trade lamb indicator saw a 34c/kg drop, resting at 621c/kg.
These figures indicate an average spread in the auction system ranging from approximately 600-670c/kg, with the majority of sales falling between the 600-650c/kg bracket over the past five days.
This week commenced with lamb prices experiencing a negative trend, witnessing a reduction of up to $10 a head in value as processors showed reduced support at saleyards.
Notably, Bendigo and Corowa, NSW, saw little activity from supermarket buyers on Monday, and major export buyers remained subdued amidst reports of ample supplies of both lamb and sheep at processing plants.
Markets across various regions including Dubbo, NSW, Ouyen, and Wagga Wagga, NSW, also noted a decline in demand, with not all regular buyers participating or operating at full capacity.
The impact of reduced processor support was particularly evident for heavy lambs weighing more than 30kg, exacerbating the pull back in prices.
On Tuesday, the lamb markets experienced fluctuations as it delicately balanced supply and demand dynamics.
At the Ballarat lamb sale, the number of lambs dropped to 22,535, following a hefty correction in prices from the previous week.
Heavy lamb quality was excellent, with a substantial supply of grain-assisted lambs.
Nevertheless, prices for heavy lambs softened $6, averaging 630c/kg.
Equally, woolly lambs faced a more significant decline of up to $15.
Trade lambs dropped $6-$8, with competition appearing erratic at times.
Lambs weighing 20-24kg fetched $118-$160, averaging 630c/kg.
Interestingly, there was a notable upward tick in mutton prices, with rates surging by as much as $20 to average 270c/kg.
