Spring lamb set for a leap

Lower old season lamb prices weighed down the Eastern States Trade Lamb Indicator (ESTLI) last week resulting in a slip of about 20 cents a kilogram to 472c/kg.

Mecardo market analyst Augusto Semmelroth said lamb markets had been relatively volatile during the past few weeks.

He said weekly saleyard numbers had varied some 20 to 30 per cent week-on-week.

“Not only have yardings fluctuated considerably between weeks, but the quality of animals on offer has also varied, adding some extra volatility to Meat and Livestock Australia’s National Livestock Reporting Service (NLRS) State indicators,” Mr Semmelroth said.

“Despite the increasing number of new season lambs being consigned, they are still the minority of total yardings.

“As a result, the lower prices paid for old season lambs in plain condition continues to impact negatively on the overall performance of most indicators.”

Mr Semmelroth said the past week’s rain might entice some producers to hold stock to heavier weights or restrict numbers of stock in plain condition from reaching the market.

“This could give some support for prices this week,” he said.

Although lamb supply at Cowra was reduced, the number of new season lambs dominated the yarding last Friday.

Of the 6000 lambs offered, about 4000 of those were new season lambs.

NLRS reported competition was good resulting in a firm to slightly dearer market.

As a result, medium and heavy trade weight new season lambs were firm and averaged about 515c/kg.

About 40pc of the yarding were young lambs from 22kg to 24kg and they topped at $128 a head.

Old lamb of similar weight, by comparison, topped at $112 a head.

Forbes Livestock and Agency Company director Tim Mackay said at Forbes on Tuesday the new season lambs made up about 50 per cent of the lamb yarding.

“There seems to be plenty of them about from the traditional supply areas and in the next few weeks I expect they will really start to flow into the market,” he said.

In the north of the State, Colin Say and Company agent Craig Thomas said the supply of new season lambs would be about three months away.

“The (dry) season has really had a big influence on the supply of lambs in this region,” he said.

“Lots of lambs were sold into the south earlier in the year so we have few lambs being offered on the Northern Tablelands at the moment,” he said.

In the Tamworth district, Davidson Cameron McCulloch and Company branch manager Daniel McCulloch said there would be a gap in supply between the old lambs and new spring lambs.

“We are almost at the end of the old lambs and many people are choosing to send them into the sales at 19kg to 20kg rather than try to put more weight on them at this stage in the season,” he said.

“The new season lambs are probably going to be a bit later than normal so I expect we will start to see the bulk of them starting to flow in late September and into October.”

Meanwhile, over-the-hooks lamb rates slipped another 10c/kg.

Processors claim they have reduced price grids due to the number of new season lambs on the market.

The 20kg to 22kg lambs have averaged 488c/kg, while the 24kg to 26kg category was on about 485c/kg.

WITH plenty of old season lambs still on the market, the prime lamb sale at Wagga Wagga last week was as much as $10 a head cheaper.

G.J. Hulm and Company agent Tyler Pendergast, Tumut, said it could be another month before new season lambs dominated the yardings at Wagga.

“At the sale last Thursday the suckers would have been about $10 a head cheaper, while the plainer, old lambs sold for even less,” he said.

To put supply into perspective, Mr Pendergast said in a yarding of about 30,000 lambs last week only 8000 were new season.

“By the middle of September there should be a few more spring lambs being offered and from what I've seen in clients’ paddocks they are growing very well,” he said.

“The mild winter and good feed mean the lambs are coming along really well and I expect when they are ready for market there will be some top lines being offered.”

Mr Pendergast, (pictured with colleague Mal Vogan, Tumbarumba, at last week’s lamb sale) said sucker lambs were on par with previous years.

“I wouldn’t say they are any earlier or later than past years,” he said.

“We didn’t get a lot of rain during the weekend like some of the northern areas of State did, but I expect it might mean the flow of lambs in the north will steady up.”

Mr Pendergast hoped this may help firm up lamb prices across the State.