The mild winter, reasonable pasture and cheap grain has left restocker lambs scarce and demand high, leaving prices on restocker and light lamb categories around 40pc higher than last year's.

Availability of restocker grades has declined 3pc from the same period last year, as a larger proportion of lambs have been sold at heavier weight ranges.

Some buyers have been prepared to pay a premium for suitable restocking lines.

This strong demand has been evident all year, with every 2009 monthly price average exceeding the five year price average.

Excellent demand for restocking grades forced average prices up $2 on last week, as most prices settle around $73/head – a 40pc rise year-on-year.

Strong demand for feeder lambs meant prices were also dearer, up $2 on last week, to average $70/head – a 30pc gain year-on year.

At the close of Thursday’s markets, the eastern states' restocker lamb indicator gained 1¢, to settle at 436¢/kg cwt.

There was little change in MLA's national lamb or sheep price indicators this week, with the largest a 12¢ fall for trade lambs, to 389¢/kg cwt (up 15pc on last year's), and 6¢ for heavy lambs, to 380¢/kg (10pc higher than last year's).

The seasonal lamb flush in the south-east is now in full swing, with heavy export weight new season lamb numbers up 85pc on last year's numbers in Victoria and SA.

The overall NSW season, however, is past its peak, and most lambs there now are in the trade weight range.

With sheep, reduced numbers and stronger demand for restocking lines resulted in the eastern states mutton indicator lifting 1¢, to settle at 294¢/kg cwt this week.