TIGHT supplies of sheep and lambs, coupled with the rising wool market is adding plenty of value to sheep.
Lamb contracts out to the end of January have producers earning a potential 630 cents a kilogram (carcase weight) for finished lambs, while this month they have been as high as 650c/kg.
Elders livestock manager, Martin Simmons, Dubbo, said the lack of supply had really held the sheep and lamb markets together this year.
“It’s certainly been a numbers game at Dubbo saleyards,” he said.
“At no stage through the winter or early spring did we reach any great heights when it comes to numbers like we have in previous years.
“The drier autumn, winter and spring, higher wool prices, breeders hanging on to ewes for a year or two more and now a slant towards wether production because of the wool market, have all had a marked effect on the strong sheep and lamb values.
“With all that in mind it tells me the next 12 months for sheep and lamb producers is going to be very, very positive.”
Landmark Cootamundra agent, Anthony Dean, has been buying store lambs for clients who have contracts for finished lambs into January/February at 620c/kg to 630c/kg.
"So we are happy to buy at current prices because with a 10-week turn around we are looking at a good margin."
But there’s also plenty of competition for store lambs and Landmark Narrandera livestock agent, Ryan Burden, found the market too strong to fill his clients’ orders during the circuit sale in the Yass district on Tuesday.
"These lambs are well-bred and in great condition, but the market was stronger than what I expected," he said. "There are just not enough sheep around, and with good returns for those with quality lambs it looks like these levels will be around for some time."
Butt Livestock and Property principals, Phill and Sally Butt, Yass, sold more than 19,000 of their clients’ store lambs in great condition during the annual spring Yass circuit sale.
Mr Butt said with store lambs making well over 300c/kg (liveweight), demand does not appear to be abating.
“If anything, with contracts at 630c/kg (cwt) available until the end of January, restockers with feed or grain are prepared to bid up to secure sufficient numbers,” he said.
Dubbo Stock and Station Agents Association secretary, Tim Sampson, said the drier season did force some lambs onto the market a bit earlier than normal.
“But prices for lambs at this stage are very good, particularly for our market here at Dubbo, and better than they are normally going into Christmas,” he said.
