MLA reports today that despite the high current value of the Australian dollar and some abattoir closures, demand for lamb remains strong from processors.

The rise in the price of heavy lambs is largely due to the tighter number being supplied, MLA says.

Heavy lamb numbers over the past fortnight have been the lowest for the year, although the first few weeks of July are typically a lower supply period.

Last season's lambs that have been grown out generally begin to decline in number before new season lamb supply increases during spring.

Across the States, Victoria, South Australia and Western Australia recorded substantial gains, while NSW prices were slightly cheaper.

Victoria and SA heavy lamb indicators both rose 14¢, to settle at 498¢/kg and 468¢/kg (cwt) respectively, the highest levels since 2004.

WA prices were 16¢/kg higher at 419¢/kg, while the NSW heavy lamb indictor dropped 2¢/kg, finishing Thursday at 468¢/kg cwt.

The highest price of $165/head was paid in Victoria for two pens of lambs at Ballarat, which averaged 32-34kg cwt.

This equals the record price paid in Victoria during mid- June at Ballarat.

The top price for NSW for the week was $152 at Forbes, for SA $140, WA $114 and Tasmania 112/head.