Lamb prices keep climbing

Lamb prices keep climbing


Markets
Owen Blake and his father Peter, "Tarandi", Harefield via Wagga Wagga, sold 174 prime lambs for $230 at Wagga's sale last Thursday.

Owen Blake and his father Peter, "Tarandi", Harefield via Wagga Wagga, sold 174 prime lambs for $230 at Wagga's sale last Thursday.

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With an indicator price above 650 cents a kilogram (carcase weight) many graziers and even analyst have been asking just how much higher the lamb market can climb.

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WITH an indicator price above 650 cents a kilogram (carcase weight) many graziers and even analyst have been asking just how much higher the lamb market can climb.

After tracking most of the year below last year’s prices, in the past month lamb averages have zoomed ahead climbing about 85c/kg in the past month. 

In NSW lamb rates are now about 40c/kg higher than at the same time last year.

Mecardo analyst Matt Dalgleish said a few factors could conspire during the coming month to see lamb prices extend their gains further into winter.

He said these factors could include continued rainfall and a lower Australian dollar back toward US70c to US72c. 

“Nevertheless, it appears that on a technical and seasonal percentage price gain perspective that we are fairly close to a top for the Eastern States Trade Lamb Indicator (ESTLI),” Mr Dalgleish said. 

Owen and Bridie Blake, “Tarandi”, Harefield, normally aim their lambs for the trade weight market, but when some of them weren’t ready for market earlier in the year, they were held back and the decision has paid off. 

Their heavy lambs sold to a respectable $230 a head at Wagga Wagga last week which Mr Blake said was very pleasing. 

“This might be the top of the market, but with all the rain about we really have to wait and see,” he said. 

Forbes Livestock and Agency Company agent Tim Mackay, Forbes, said the market may have reached its peak for the moment. 

“The prices at the Forbes sale on Tuesday were not any dearer, but they certainly weren’t any cheaper either,” he said. 

“I reckon the prices should level out for a while. 

“The rain has meant people have not been able to get stock out of paddocks, but even so the quality of those lambs being offered has been really good.” 

Mr Mackay said the rain would also delay the sucker lambs onto the market later this year. 

“I’d estimate the suckers could be about a month later than normal,” he said.

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