More than 100,000 sheep and lamb were trucked across the Nullarbor last month, the highest level seen since November 2022.
Last month, total interstate transfers reached 104,500 head, 41 per cent of which were lambs (42,700 head) and 59pc sheep (61,800 head).
It is the first time in 14 months that combined sheep and lamb west to east transfers have cracked six figures.
According to Department of Primary Industries and Regional Development (DPIRD) figures, sheep transfers last reached more than 60,000-head in November 2020.
This was when 123,773 head were moved from west to east, after the drought broke and producers looked to restock.
Meanwhile, January lamb flows reached the highest level seen since 94,816 head in November 2022.
Over the past two months, west to east cattle transfers have also soared.
In January, 5795 head made their way into the Eastern States compared to year-ago levels of 933 head and 5023 head in December.
Those numbers are significantly higher than what had previously been reported over the past 12 months, with May being the only month when more than 1000 head of WA cattle were sent over east.
Elders State livestock and wool manager Dean Hubbard said livestock movements to the east had ramped up in the December-January period, as had numbers into the live export trade.
"We have had a very good run the past six to eight weeks given the significant interest from the Eastern States," Mr Hubbard said.
"However, things will probably tighten up slightly over the next month or so.
Mr Hubbard said mutton prices remained historically low and it was a market the industry, including agents and clients, wanted to see improve.
He said that improvement wouldn't be seen until industry was close to exhausting current mutton supplies.
"At the moment the Eastern States is dropping off slightly with pricing," Mr Hubbard said.
"We are going through a period where producers are looking to offload feeder lambs and sheep.
"That is because they aren't keen on feeding them for any longer than they require given the high grain prices."
Mr Hubbard said there was probably another month or so of oversupply into the WA market.
He said the majority of numbers heading over east were destined for feeding, as opposed to processing - but that could change.
"Similarly to WA, the Eastern States feeders are chasing slightly heavier lamb than they previously have.
"That is in an attempt to offset and minimise the numbers of days they are feeding to finish given the current grain prices.
"The cattle market is the same, there isn't a real appetite to feed for long periods of time.
"I think demand will ease slightly this month.
"Those grain prices, and pressure locally around water, are big talking points in industry at the moment and skewing the way we view the market."
Elders WA commercial cattle manager Michael Longford said demand for WA cattle had increased because prices in the Eastern States had risen.
"The Eastern States' demand has taken the pressure off in what has been a dry season for most parts, with a lack of feed and high grain prices," Mr Longford said.
"Most of the State was down 20-50pc on their hay last year.
"We have seen grain prices go up along with the hay prices as well, and there hasn't been rain in areas where there normally would have been by now - this all leads to a lack of feed.
"With our lower pricing here and high pricing over east, more cattle have gone across the border, with processors, graziers and lotfeeders being the main buyers."
Nutrien Livestock WA manager Leon Giglia said the disparity between WA and east coast sheep and cattle markets had allowed for competition in recent weeks.
However, Mr Giglia said markets had eased across the border and he expected to see, over the next two to three weeks, a tightening up of Eastern States' involvement in the WA market.
He anticipated that would open up again in another three to four weeks.
"The issue we have in WA is the cost of maintaining livestock, inclusive of the cost of feed and water.
"As such, producers are not in a position where they can hold onto livestock, and want to move them when they can.
"The east coast is providing a strong alternative with both processors and lotfeeders involved in our market."
Mr Giglia said slaughter cows had been purchased and processors had also participated in the marketplace at auction.
He said there was also involvement from restockers in New South Wales
and northern Victoria.
"Cattle transfers to the Eastern States have increased over the past six months because of that market differentiation," Mr Giglia said.
"As a result of this our prices have improved with east coast participation."
