Mutton prices are plummeting, stripping the market of its value daily.
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The benchmark mutton indicator has dropped 65 cents a kilogram carcase weight in the past week and 68c/kg in the past month, now tracking at 240c/kg or 50 per cent lower than this time last year.
The decline began last week when selling centres were flooded with all grades of sheep.
On Thursday at the major regional centre of Wagga Wagga, NSW, prices took a dive of $30-$40 a head, with few sales reaching above $100.
The bulk of the yarding averaged 200-240c/kg.
Despite smaller yardings of mutton early this week as producers reacted to previous price drops, rates kept falling.
In Corowa, NSW, prices fell significantly, with some categories seeing rates tumble by $60.
Heavy crossbred ewes weighing more than 30kg were selling from $60-$68, averaging 196c/kg.
Just over the river a few 100 kilometres away in Bendigo, the National Livestock Reporting Service reported a late collapse of $50 in the market, after starting $20-$30 cheaper.
A Corowa agent attributed the decline at both selling centres to increased numbers due to the current dry autumn.
Personally, I believe the impact of falling prices will test the strength of the likes of store markets and AuctionsPlus in the weeks ahead.
We may see prices drop further before they start to pick up again.
At the Ballarat lamb and sheep sale, mutton prices continued to come under pressure, as some processors refrained from participating or did not operate.
Therefore, subdued competition led to weaker prices across all categories of stock, with rates consistently declining.
Notably, it was rare to see prices surpassing $60 for exceptional crossbred ewes, with the highest pen fetching $67, while many ewes barely crossed the $50 threshold.
On average, heavy ewes fetched 174c/kg.
Additionally, trade sheep prices ranged from $48-$66.
Despite challenges, there were positive aspects at the sale, particularly in trade and heavy lambs, which maintained firm prices or saw a slight increase of a few dollars in a reduced yarding of 23,115 lambs.
The mixed quality of the yarding prompted buyers to step up for the better-presented pens, with many processors focusing on short-skinned lambs.
Trade lambs were traded from $130-$158, averaging 619c/kg.
Extra-heavy lambs saw a lift of $2-$6, selling between $166-$243.
