Lamb prices rebounded this week as demand and inadequate quality supplies direct to abattoirs forced major processors back into saleyards.
Analysts also indicated some reluctance from producers to accept lower saleyard rates due to limited supply. With processor contracts for lambs at around 600c/kg in September and October, domestic processors showed they needed more lambs to meet immediate orders.
Lamb prices have been in relative free-fall for the past three weeks, compounded by producers concerned about market instability turning lambs off early, but this week, Eastern States Daily Indicators for all lamb categories rebounded. The National Livestock Reporting Service’s Eastern States Indicators for all lamb categories increased, with the restocker indicator rising 86 cents overnight to 860c/kg, or 140c/kg in one week. The Merino lamb indicator rose 17c/kg to 632c/kg, or 27 cents for the week.
The light lamb indicator closed at 699c/kg, up 3 cents overnight, and up 29c/kg for the week. The trade lamb indicator finished up 20 cents to 669c/kg, up 29c/kg over the last seven days. The heavy lamb indicator closed up 20 cents to 631c/kg and was up 31 cents for the week.