AGENTS in the Central West have estimated a price lift of as much as 25 per cent since rain in October has both sheep and lamb producers wondering if they should be holding onto stock or taking the money.
NSW lambs averaged 617 cents a kilogram (carcase weight) this week, and although it was slightly softer than last week, it was 64c/kg better than this time last year.
The restocker lamb indicator remained volatile and after climbing to 735c/kg last week had returned to 623c/kg - more on par with prices for this time of year.
The sheep market continued to shine, hitting an average of 445c/kg, which was about 50c/kg higher than this time last year.
“It’s supply and demand for sheep,” says Tim Mackay of Forbes Livestock Agencies, Forbes.
He said the sheep and lambs had been coming through the saleyard, but not in big waves.
“The October rain improved the sheep restocker market immensely,” he said.
“Everybody was getting nervous until early October rain, and since then the lamb and sheep prices have picked up probably 25pc.”
At the same time, Mr Mackay said demand had outstripped supply for most of the year.
“People have been hanging on to sheep longer than they would normally do,” he said.
“Originally due to the dry year (which has been the situation out far west), then Victoria has possibly had the wettest year in recorded history, which has limited the number of sheep and lambs coming north over the border.
“As well, the wool market is encouraging growers to hold onto ewes longer to benefit from an extra year’s cut.
“All these things exacerbate the whole scenario.”
