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 Lamb prices off the boil, after last week's surge 

Lamb prices off the boil, after last week's surge

15 Mar, 2009 03:00 AM
Saleyard lamb prices this week mostly came off the boil, although variable with some rises in the eastern states, following the strong price gains last week.

MLA says light weight and Merino categories generally eased.

Trade and export category prices were similar to those of last week.

In the eastern states, however, MLA says price rises were evident in NSW and Victoria averages at the end of the week.

The dearer prices, however, were primarily due to increased interest from processors and came despite low skin values.

Restocking lambs gained 2¢ from last week, to 395¢/kg cwt.

Merino lambs were 5¢ cheaper, at 336¢/kg cwt.

Light lambs fell 11¢ to 364¢/kg cwt.

Trade lambs gained 7¢ to 423¢/kg cwt, while heavy lambs lifted 3¢/kg cwt.

In contrast to the still positive prices in the eastern states, a big jump in yardings in WA saw big saleyard price falls there.

SA lamb prices also eased.

Mutton was 3¢ higher at 201¢/kg cwt.

Sheep yardings at MLA’s NLRS reported markets in WA reached 42,250 head this week, 76pc higher than last week (as trading returned to a full week following last week’s public holiday) and 36pc more than the same time last year.

Intense competition from processors, live exporters and restockers is still encouraging producers to use the physical market system.

The shift to cropping is also placing more sheep on the market.

The lower $A along with strong demand from the Middle East is a key driver in the mutton market at present, particularly in WA. Malaysia has also been a strongly performing market for Australian mutton.

In contrast, the US and the EU are currently purchasing product on a hand-to-mouth basis.

Live export demand for sheep remains very strong and continues to be the main driver in the WA market.

Mutton quality is very mixed as seasonal conditions affect pasture quality and quantity.

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