THE 2009 seasonal winter peak in lamb prices has probably passed, with high old lamb and rising new season lamb supplies pulling prices off their recent records, according to the MLA.
National lamb indicator prices fell around 6pc this week, leaving Merino and light grades still well above last year (11pc to 17pc higher), but trade and heavy lambs are only slightly above last year’s peaks.
Demand for lamb remains surprisingly strong, however, both in Australia and overseas.
MLA says this should keep prices from falling too far too fast over the coming spring.
Similarly, mutton sheep values fell around 4pc this week, with yardings up 24pc.
But with the national indicator at 307¢/kg cwt, prices remain very high on the back of low on-farm numbers and strong Middle East demand.
In contrast, cattle values have only reluctantly been moving towards a seasonal peak, expected in August or September, with export categories most unlikely to rise the 13pc to 16pc needed to match the September peaks last year, MLA says.
Export buying from Japan, Korea and the US remains sluggish with prices below last year, compounded by a rising $A, now nudging US 82c for much of this week.
Young cattle values, on the other hand, are closely tracking last year’s rates.
They could make up the required 6pc to reach last year’s peaks, given the lower grain costs and improved season, MLA forecasts.
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